Oil prices have spiked in…
As OPEC struggles to tackle…
OPEC oil output reached a 2017 high in June as Libya and Nigeria continue a production recovery despite the bloc’s efforts to ease a global supply glut, the results of a new Reuters survey shows.
The African duo is exempt from an OPEC deal to limit output to 32.5 million barrels per day through March 2018, but the June rate will surge to 32.72 million bpd – marking a 280,000 bpd increase from the previous month. This figure includes production from Equatorial Guinea, which only officially joined OPEC in May.
Saudi Arabia and Kuwait have shouldered most of the cuts to ensure the bloc sticks to its commitment to reduce production by 1.2 million barrels per day. Compliance to the deal will remain in the 90-95 range, despite the production increase this month.
The biggest rise in production came from Nigeria, and total exports in August should surpass 2 million barrels per day – a 17-month record.
Related: Only $60 Oil Can Save The Aramco IPO
Libyan production has also been increasing as a period of civil stability allows the National Oil Corporation to begin rebuilding the national oil sector. An industry source told World Oil today that Libya had reached—and exceeded—1 million bpd in production for the first time in 4 years – meaning the NOC met its goal a whole month earlier than planned.
The NOC recently reached an interim deal with Germany’s Wintershall to immediately resume production in concession areas and related fields, which would unblock 160,000 bpd worth of production that has been shut-in for most of the past two years over a dispute between the companies.
Riyadh also increased production by 40,000 bpd, but its compliance to the OPEC deal stayed at 100 percent. The KSA has been habitually over-cutting production to make up for rising output from other members of the bloc.
By Zainab Calcuttawala for Oilprice.com
More Top Reads From Oilprice.com:
Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…