COMMODITY
Crude oil futures end higher as OPEC+ stresses full compliance with output cuts
Sep-18-2020

Magnifying their previous sessions’ gains, crude oil futures ended higher on Thursday as the Organization of the Petroleum Exporting Countries (OPEC) and its allies stressed the importance of full compliance with output cuts during their monthly meeting. The oil producers, collectively known as OPEC+, held a joint committee meeting on Thursday to discuss their existing program of output cuts. The group had previously pared record production cuts of 9.7 million barrels per day to 7.7 million barrels per day starting in August, but also said that countries that failed to previously meet their quota limits would be compensating for their overproduction. The Joint Ministerial Monitoring Committee said it will recommend that the OPEC Conference approve an extension of the compensation mechanism, which was set to end in September, until the end of December. The committee also pegged overall conformity among participating OPEC+ countries in the output cut agreement at 102% in August, including Mexico, citing secondary sources.

Crude oil futures for October rose 81 cents or 2 percent to settle at $40.97 a barrel on the New York Mercantile Exchange. November Brent crude surged $1.08 or 2.6 percent to settle at $43.30 a barrel on London's Intercontinental Exchange.

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