*The Easing of OPEC’s Cuts?*
With returning demand OPEC could start to loosen its production cuts after its recent move at strict adherence to the agreement. Saudi Arabia, who had previously been the main driver behind getting absolute compliance with the cut agreement from all participants, apparently is now pushing to an easing of the restrictions. Their proposed plan would see the cuts reduced by 2 million bpd to 7.7 million. The plan is intended to help ease the group out of cuts and prevent a scramble to hike production in competition with one another.
*Libya Blaming UAE for Blockade*
Libya’s National oil Corp has accused the UAE of intervening in its civil war by encouraging eastern forces to blockade its oil exports. The eastern forces under leader Khalifa Haftar are pushing for a fair share of the profits from the Tripoli based UN recognised government. The first oil to be loaded from Libya since January at Es Sider port is now reportedly occupied by Russian and Syrian mercenaries under direction from the UAE.
*Saudi Aramco cuts Asian Heavy Crude Supply*
Reuters are reporting that the Saudi oil giant has cut the volume of August-loading crude that it is supplying to at least four buyers in Asia. These cuts were mainly for Arab Heavy crude grade and could further exacerbate the premiums for heavier crude that we noted last week.
*Iran Boosting Oil Output Capacity*
According to the country’s Oil Minister Iran is expanding its oil producing capabilities in anticipation of an end to sanctions and the OPEC+ cut agreement. US sanctions had crippled the volume of oil the country has been exporting, but it is lining itself up to take advantage of a rosier outlook post covid-19.