Top producers Saudi Arabia and Russia have signaled they are ready to get tough with oil producers who are still pumping more than they promised. But it remains to be seen how they will back their rhetoric, analysts say.
The two nations have spearheaded a deal to remove 1.8 million barrels of oil a day from the market in a bid to shrink global crude stockpiles and drain a persistent glut of petroleum. Officials from oil producing nations, including Russia and Saudi Arabia, will meet in Abu Dhabi on Monday and Tuesday to figure out how to improve compliance with that deal.
The meeting comes as OPEC's overall production has ticked up in recent months, keeping a lid on oil prices even as falling U.S. crude stockpiles provide support.
Following a recent meeting of oil producers in St. Petersburg, Russia, Saudi Energy Minister Khalid al-Falih said it would not give OPEC members and other exporters a "free ride." Russian energy minister Alexander Novak insisted on 100 percent conformity from all countries.
"Saudi has signaled that it is going to be stern with those states with less than stellar compliance track records. But the big question is what tools does it have at its disposal to compel better behavior?" said Helima Croft, global head of commodity strategy at RBC Capital Markets.