Nigeria ready to compensate for overproduction in May-June

Nigeria said on Saturday it was ready to make additional oil output cuts from July to September to compensate for producing more than its quota in May and June, when OPEC and its allies implemented a deal to curb supply by record amounts.

“Nigeria reconfirms our commitment under the existing agreement,” Nigeria’s Ministry of Petroleum Resources said in a statement on Twitter ahead of talks between OPEC and its allies.

It said it also “subscribes to the concept of compensation by countries who are unable to attain full conformity (100 per cent) in May and June to accommodate it in July, August and September.”

It will recalled that the Organisation of Petroleum Exporting Countries (OPEC) was on 74 per cent as at May 29, with Nigeria and Iraq not living up to their commitment. Nigeria was less faithful, cutting just 19 per cent of its promise.

According to the survey data, Nigeria and Iraq did not live up to their commitments under the massive production cut deal that promised to take 9.7 million barrels of oil production per day out of the oversupplied market.

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