Saudi Arabia’s energy minister urged producers that are part the Opec+ alliance to fully comply with a production restriction pact and not resort to compensatory cuts. “The compensation mechanism was not established to substitute for full compliance or to encourage non-compliance. Full compliance remains the core of our collective efforts,” Prince Abdulaziz bin Salman told an online joint ministerial meeting of core Opec+ members on Thursday. “Not fully complying, and then compensating, should not become the norm. We must strive to put the compensation scheme behind us and implement it before year-end,” he added. Opec+ sprung into action during the destruction of demand wrought by the coronavirus pandemic in April and reversed an increase in output by agreeing to a historic level of output restrictions. The producers agreed to cut 9.7 million barrels per day between May and July, with nations who exceeded curbs such as Iraq, Nigeria, Angola and Kazakhstan given until September to make compensatory adjustments. The group has since increased output in line with rising demand for crude following the easing of lockdown restrictions in many parts of the world. From August 1, the group has been drawing back 7.7m bpd of output from the markets. Curbs are set to remain in place until April 2022 but will be tapered as demand prospects improve. Prince Abdulaziz delivered a tough message for nations that failed to stick to agreed targets, stating that “full compliance is not an act of charity”. “Attempts to outsmart the market will not succeed and are counterproductive, when we have the eyes, and the technology, of the world upon us,” he said. Opec has indicated a bearish outlook for oil markets for the remainder of the year. The exporters’ group slashed its annual forecasts this week, lowering demand estimates for this year and next by 400,000 bpd. Opec sees demand declining by 9.5m bpd, resulting in overall demand of 90.2m bpd for 2020. Brent, the international benchmark, was up 1.44 per cent at $42.83 per barrel at 6.36pm UAE time. West Texas Intermediate, which tracks US crude grades, was up 1.32 per cent at $40.69 per barrel. In the face of uncertainty, markets will increasingly look to Opec+ for direction, Prince Abdulaziz told delegates. “We must demonstrate that we are disciplined and fully committed to our agreement,” he added.