Sources in Saudi Arabia have told Reuters that they want Nigeria and Iraq to observe 100 per cent compliance with agreed production cuts before they would decide to push for more production quota restrictions or not.
The Organisation of the Petroleum exporting Countries and an alliance of a few other producers led by Russia, has since 2017 been pledging and renewing output limitations to keep prices from plummeting.
Nigeria and its Middle-East co-offender Iraq, have however not been adhering to the renewals agreed on in December 2018.
Saudi have been producing about 300,000 barrels per day less than the quota they were assigned, giving them a strong footing to ask for assurances.
“Of course deeper cuts are an option, but some things should happen before that.
“The rest of the OPEC countries will not cut deeply if Iraq and Nigeria don’t comply 100 per cent,” a source said.
“In December we will consider whether we need more cuts for next year. But it is early now, things will be clearer in November,” the source added.