• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 12 hours Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 21 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 13 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 2 days Maduro Asks OPEC For Help Against U.S. Sanctions
  • 1 day Former United Nations Scientist says the UN is lying about Global Warming and Sea-Level changes
  • 23 hours And the War on LNG is Now On
  • 1 day Prospective Cause of Little Ice Age
  • 3 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 21 hours L.A. Mayor Ditches Gas Plant Plans
  • 2 days Qatar Petroleum, Exxon To Proceed With $10 bln Texas LNG Project
  • 2 days Europe Adds Saudi Arabia to Dirty-Money Blacklist
  • 2 days Solar Array Required to Match Global Oil Consumption

Global Energy Advisory 28th July 2017

Refinery

Nigeria, exempt from OPEC’s oil output cut deal, has agreed to stop ramping up its production once it hits 1.8 million barrels per day. A milestone that is nearing, with output hitting 1.733 million bpd in June, according to secondary sources. Secondary-source data is considered closer to reality than self-reported output from OPEC members. For June, for example, the head of the NNPC said that Nigeria was producing 2.2 million barrels per day.

Just days after the cap announcement helped lift international oil prices, a militant attack took down the Trans-Niger pipeline, cutting out 150,000 bpd in daily production. What the incident highlights yet again is that improvements in Nigeria’s oil output are far from consistent for the time being.

So, while the willingness to cap production at a certain level boosted optimism, it was only for a short while. The report of the militant attack and its consequences is likely to have more of an impact on prices unless headwinds such as Libya’s unbound production growth prevail. Libya announced that it isn’t planning to join any agreement to curb output until it reaches its target of 1.25 million barrels per day by the end of the year.

These headwinds have weakened recently amid four consecutive weeks of oil inventory draws in the U.S. and indications of a slow-down in production growth across the shale patch. This has served to prop up prices somewhat, aided by an announcement from Saudi Arabia…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News