• 18 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 19 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 24 hours Putin Is A New Russian Stalin - Victory For The Next 6 Years
  • 15 hours Trump Bans Venezuelan National Cryptocurrency
  • 4 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 15 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 10 hours Self-Driving Cars' First Fatality
  • 19 hours Africa Is The New Land Of Opportunity For Investors
  • 36 mins Flying Taxis In New Zealand - Very Soon?!
  • 18 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 4 days HAPPY RIG COUNT DAY!!
  • 1 hour Why do Driller stocks move with the daily price of oil?
  • 22 hours Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute
  • 15 hours Is Trump Harming Oil Industry?
  • 4 days Spotify to file $1 billion IPO
  • 15 hours Tillerson just sacked ... how will market react?
Gas Exporters Want Oil-Linked Prices

Gas Exporters Want Oil-Linked Prices

Natural gas exporters want to…

How Oil Drives The South China Sea Conflict

How Oil Drives The South China Sea Conflict

Beijing has been increasing its…

Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut


OPEC should approach Libya and Nigeria, the two exempted OPEC members who were allowed to continue raising their crude oil output despite the November 2016 deal, Iran’s Oil Minister Bijan Namdar Zanganeh told media. The official said that OPEC members are compliant with their lower production quotas at an “acceptable” level, but rising supply from Libya and Nigeria is hampering the cartel’s efforts to rebalance the oil market.

“OPEC’s actions are working and compliance is acceptable overall, although there needs to be some change,” Zanganeh said, as quoted by Bloomberg. “Changes are really related to Libya and Nigeria and the 100 percent compliance of everyone.”

Rising production from the two exempt OPEC members—chiefly from Libya—has indeed slowed down the oil price improvement that OPEC targeted with its agreement. The North African country set a target of pumping more than 1 million bpd by the end of July, and it reached it early on—an accomplishment that weighed heavily on benchmark prices.

In August, however, production outages cut Libyan supply and propped up prices. In that month, Libya pumped 890,000 bpd, according to OPEC’s secondary sources, down from 1.003 million bpd in July. Nigeria, which said it would join the cuts once its daily output rate reached 1.8 million bpd, produced 1.86 million bpd, secondary source data suggested. However, Nigerian data pegged its daily production at 1.74 million bpd.

Related: The EV Boom Is Dead Without Proper Support

Iran was also treated preferentially in the original negotiations. OPEC agreed to let Iran raise its crude oil production by up to 90,000 bpd, Bloomberg recalls. In August, the country produced 3.828 million bpd, according to secondary sources. The data was in line with internal data, which gave a daily production rate of 3.845 million bpd.

Libya and Nigeria have collectively added about 550,000 bpd since the original deal was agreed to last year. That amount has offset about half of the output reduced by the rest of OPEC­­; the group agreed to cut production by 1.2 million bpd.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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