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The OPEC+ alliance has 2.375 million b/d of so-called “compensation cuts” due to make up for previous overproduction in violation of quotas, but not all members have submitted plans to implement the extra reductions, according to an internal document seen by S&P Global Platts. Of the 13 OPEC+ members required to make compensation cuts, only six have outlined their planned schedule of cuts, which total 1.222 million b/d, the document shows. The largest volume will come from Iraq, whose 698,000 b/d of catch-up cuts will be divided into 203,000 b/d in September and 165,000 b/d in October, November and December. Russia, which had the second largest excess output at 333,000 b/d, did not submit a plan, according to the document. OPEC and 10 allies, including Russia, are in the midst of a historic production cut accord aimed at helping the oil market recover from the COVID-19 pandemic. The curbs initially started at 9.7 million b/d for May-July, before tapering to 7.7 million b/d from August through the end of the year. Under the pact, any member that pumped above its quota in a particular month must atone with additional cuts below their quota in subsequent months by the end of the year. The OPEC+ monitoring committee, co-chaired by Saudi Arabia and Russia, is next due to meet Oct. 19 online to review September compliance.
