<article><p class="lead">The Opec+ coalition achieved 109pc conformity with its crude production commitments in July, down from 112pc in June, according to an internal report prepared for the group's Joint Technical Committee (JTC).</p><p>Compliance among Opec members dropped to 116pc last month from June's 120pc, while their non-Opec counterparts scored an average compliance rate of 97pc, steady on the month. The decline in Opec conformity was driven by Saudi Arabia restoring the remaining 400,000 b/d tranche of an additional, unilateral 1mn b/d cut that it made in February-April. Riyadh began phasing back the 1mn b/d in May. </p><p>Opec achieves its compliance figures by averaging out the production estimates of <i>Argus</i> and five other independent secondary sources. <i>Argus</i> also pegged overall Opec+ compliance at 109pc in July. </p><p>Those countries that have exceeded their quotas since the deal started in May last year had overproduced by a cumulative 125mn bl by the end of July, up from 122mn bl a month earlier, according to figures extrapolated from an Opec+ document. Opec members account for 43mn bl of the excess, while non-Opec members are responsible for around 82mn bl. </p><p>The Opec+ coalition has agreed to increase production by 400,000 b/d a month until April next year, followed by a 432,000 b/d a month rise until the rest of the group's cuts are fully unwound. The deal allows for a three-month pause to respond to shifting market fundamentals if necessary. Saudi Arabia, Russia, Iraq, Kuwait and the UAE will benefit from higher baselines as of May 2022. </p><p><a href="https://direct.argusmedia.com/newsandanalysis/article/2237794">Individual quotas for this month and next have been confirmed</a>, but October targets are subject to confirmation at the group's ministerial meeting on 1 September. </p><p class="bylines">By Ruxandra Iordache</p></article>
