The OPEC and its allies struggle to pump more oil while the supply of Iran falls

Representatives of OPEC and its allies reduced oil production in August because of the decline in supply of Iran due to US sanctions, said Saturday the representatives of energy producers.

This move is prompting the Organization of Petroleum Exporting Countries to strengthen its supply as US President Donald Trump calls for lower oil prices.

On Friday, a source close to the talks told Reuters that OPEC and its allies led by Russia were planning to increase crude supplies by 500,000 barrels a day, while US sanctions on the third largest producer Tehran's exports .

"If an increase in production is proposed, there will be a lot of counter-arguments from the market that it will further reduce available spare capacity," said Olivier Jakob of Petromatrix Consulting.

"Saudi Arabia made the mistake of trying to compensate for the loss of Iranian supplies with a just-in-time replacement; but the oil market is looking for greater security of supply. As a result, strong oil prices are now jeopardizing growth in oil demand, "he added.

An OPEC and non-OPEC monitoring committee meeting in the Algerian capital this weekend found that oil producers' compliance with supply reduction agreements reached 129% in August. said two delegates.

This compares to a 109% compliance level for July, indicating that the group has exceeded its targets.

Seeking to reverse the decline in oil prices started in 2014, OPEC, Russia and other allies have decided, at the end of 2016, to reduce their supply by about 1.8 million bpd.

In June of this year, however, after months of reduction of more than what their pact had requested because of involuntary cuts from Venezuela and other producers, they agreed to boost production by returning to 100%.

This equates to an increase of about 1 million b / d, but the latest figures show that they are far from achieving this goal.

LCOc1 oil reached $ 80 a barrel this month, prompting Trump to once again demand that OPEC lower its prices.

"We are protecting the countries of the Middle East, they would not be safe for long without us, and yet they continue to push for ever higher oil prices! We will remember. The monopoly of OPEC must now lower prices! ", He writes on Twitter.

Rising gasoline prices for US consumers could create a political problem for Trump ahead of the November mid-term legislative elections.

OPEC sources said any official action to increase production would require OPEC to hold an extraordinary meeting – a proposal that is not yet on the table.

However, the joint ministerial committee of OPEC and non-OPEC countries, known as JMMC, which meets on Sunday, may still recommend an increase in production if needed, sources said.

Iranian crude oil exports to major destinations: tmsnrt.rs/2MQogku