• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 6 mins WTI @ $75.75, headed for $64 - 67
  • 4 hours Trump vs. MbS
  • 5 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 9 hours The Dirt on Clean Electric Cars
  • 15 hours Uber IPO Proposals Value Company at $120 Billion
  • 6 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 22 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 5 hours EU to Splash Billions on Battery Factories
  • 19 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 10 hours Coal remains a major source of power in Europe.
  • 6 hours Poland signs 20-year deal on U.S. LNG supplies
  • 16 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 18 hours Nopec Sherman act legislation
Lithium Is Yesterday’s News – Vanadium Is The Future

Lithium Is Yesterday’s News – Vanadium Is The Future

Scalable sustainable energy storage has…

Oil Prices Under Pressure As U.S. Shale Supply Soars

Oil Prices Under Pressure As U.S. Shale Supply Soars

Continued production growth in the…

OPEC Considers Capping Oil Output Of Exempt Libya, Nigeria

Oil

OPEC is thinking of putting a ceiling on the crude oil outputs of Libya and Nigeria, as rising production from these two OPEC producers exempt from the cuts is further complicating the cartel’s efforts to draw down oversupply and boost oil prices, The Wall Street Journal reported on Friday, citing OPEC delegates.

“Nigeria is definitely becoming a worry for us,” a delegate to OPEC from a Persian Gulf Arab country told The Journal, while OPEC delegates from a few other nations have expressed similar concerns.

According to a Platts survey from Thursday, Libya and Nigeria are expected to continue to increase oil production in the coming months. The two countries’ combined output is currently some 380,000 bpd above October levels, the month which OPEC used as a benchmark to base its production cuts. Militancy, attacks on oil infrastructure, and port terminals blockades have quieted in both African countries, therefore further increases in production are likely, according to Platts.

Last week, a new militant group in the oil-rich Niger Delta said it was calling off the war it had threatened to start on June 30, and has decided to “give peace a chance”, in what could be a relief for Nigeria, which had started to recover its oil production that was crippled by militant attacks last year.

Nigeria’s crude oil production increased to 1.68 million bpd in May, up by 174,200 bpd over April—the highest level in more than a year—after the restart of Forcados loadings for the first time since October 2016, according to OPEC’s latest Monthly Oil Market Report.

Libya, for its part, is reaching a 1-million-bpd production—the highest in four years—and in line with its target to have that output reached by the end of July.  

In May, Libya’s average daily production was 730,000 bpd, as per OPEC secondary sources, up by 178,200 bpd compared to April.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment
  • Obamanomics on July 10 2017 said:
    Opec is no longer relevant as they have been proven to talk plenty with 0 action. OPEC will announce they will "consider" oil cap followed by "decision" to cap production and then "announcement" of oil cap, but we all know these countries will be pumping furiously behind closed doors.
  • Sean McMahon on July 10 2017 said:
    @naomi aren't Qatar expanding gas production?
  • Naomi on July 09 2017 said:
    OPEC has no leverage. Expanding production are Israel, Greece, USA, Kurdistan, Qatar, Mexico, but not Venezuela.
  • Mark Taylor on July 08 2017 said:
    Even if they could cap Libya and Nigeria's production, it will not happen. OPEC is just trying to move the price of oil because it is killing them as well.

Leave a comment

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