Crude prices declined nearly 1% on Thursday following OPEC’s decision to ease oil output cuts to 7.7 million barrels per day. in the month of August, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman confirmed on Wednesday.
Meanwhile, Mexico refused to participate in further production cuts, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman unveiled, claiming that the country fulfilled its obligations in May and June. However, due to compensations for the failure of some countries to comply fully with the reduction agreement during the previous period, the “effective” level of cuts will amount to at least 8.11 million bpd in August, he clarified. The exact amount of reductions will remain unclear as the non-complying members did not present their compensation plans for June yet, he warned. The underperformers are required to do so by the end of July, OPEC said in a separate statement. Nick Note: OPEC is making the same mistake that is being made the world over. And that is bowing to commercial interests and coming out of lock down to soon. OPEC is upping production at the very time lockdowns will begin again. This is not the end but the very begging of what will be the end.