OPEC's top two producers agreed Thursday to strengthen their commitment to production cuts, as the oil cartel reported a collective increase in output last month in a setback for its deal to pump less.

The pledge from Saudi Arabia and Iraq, the first and second largest OPEC producers, came after their oil ministers met in the Red Sea city of Jeddah.

Saudi Energy Minister Khalid al-Falih and his Iraqi counterpart Jabbar al-Luaybi also vowed to ensure coordination of their nations' oil policies, according to the Saudi Press Agency, as the Arab neighbours seek to upgrade strategic ties.

OPEC states and other oil producers agreed in November to cut output until March 2018, in its long-haul gambit to erode a world oil glut and boost prices.

But despite the commitment, crude production by OPEC members saw an uptick in July, including by Saudi Arabia which had championed efforts by the cartel and allied independent producers to extend an output freeze.

Output from the 14 cartel members hit 32.87 million barrels per day (mbd) last month, OPEC said in its monthly report on the oil market, up from 32.69 mbd in June.

The inability of some members to cut ouput has raised doubts about OPEC's capacity to enforce the November deal.

Saudi Arabia and Iraq have suffered huge economic pain because of sliding oil prices.

Luaybi's visit symbolises a growing rapprochement between Riyadh and Baghdad as the kingdom seeks to increase its influence in Iraqi politics and undercut the say of regional rival Iran.

The minister also met with Saudi Crown Prince Mohammed bin Salman in Jeddah to discuss "joint opportunities in the economic fields and energy in particular", SPA reported.

Tweet

U.S. shale player Sanchez boosted by second quarter acquisition
Washington (UPI) Aug 9, 2017
U.S. shale exploration and production company Sanchez Energy said its output increased more than 40 percent over the first quarter of the year. Sanchez is one of the larger operators in the Eagle Ford shale basin in Texas and added more than 300,000 acres to its portfolio through a March acquisition from rival shale player Anadarko Petroleum. With the assets entrenched in its por ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The Space Media Network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceMediaNetwork Contributor $5 Billed Once credit card or paypal		SpaceMediaNetwork Monthly Supporter $5 Billed Monthly paypal only