Nigeria, Libya oil supply uncapped

OPEC Can Absorb 'Orderly' Oil Recovery from Libya, Nigeria, Iran

17 July 2017 | Business

OPEC wants an “orderly recovery” in oil production from Libya, Nigeria and Iran and has a flexible output target under its cuts agreement to accommodate more crude from the three member nations, the group's Secretary-General Mohammad Barkindo said.

The Organization of Petroleum Exporting Countries was anticipating a revival in production from the three when it set a targeted output range from 32.5 million to 33 million barrels a day under its November agreement, Barkindo told Bloomberg Television on Wednesday at a conference in Istanbul.

Nigeria will support a cap on its production, the country's Minister of State for Petroleum Resources Emmanuel Kachikwu told reporters in the capital Abuja.



Cuts Eroded

“Dramatic improvement” in output from Libya and Nigeria diluted OPEC's actual supply cut of 920 000 barrels a day in June, almost halving it to 470,000, the IEA said in a report. If Libya can sustain current production of about 1 million barrels a day, Nigeria builds on recent gains and the rest of OPEC holds output steady, then the group's cuts could be eroded in July to less than 300,000 barrels a day, the Paris-based agency said.

Libya and Nigeria may be asked to cap their output soon in an effort to help re-balance the market, Kuwaiti Oil Minister Issam Almarzooq said Monday at the Istanbul event. Both African nations are expected to send representatives to the next meeting of the OPEC and non-OPEC Joint Technical Committee on July 22 in Russia, Barkindo said.

Nigeria's output limit would come into play when the nation can pump at a stable rate of 1.8 million barrels a day, about 100 000 more than it's currently producing, Kachikwu said. “We still are below the 1.8 million barrel a day benchmark set for us by OPEC,” he said. “I think that over the next one or two months, hopefully, we can get to that point where we can say the recovery has been tested, it is systemic and predictable.”

OPEC recognises that Libya, Nigeria, and Iran have faced “severe challenges,” and it welcomes their increased production, he said. “We are glad these countries are recovering fast.”



Libya Output

Nigeria will miss an OPEC ministerial committee meeting in Russia scheduled for July 24, but Kachikwu plans to meet with Saudi Arabia and Russia after that, he said.

Libya's output has risen to 1.05 million barrels a day, or 45,000 barrels a day more than the country was pumping at the beginning of July, according to a person with direct knowledge of the matter who asked not to be identified for lack of authorization to speak to the media. The nation's output is at the highest level since June 2013, according to data compiled by Bloomberg.

The global cuts accord between OPEC and non-OPEC producers faced “headwinds” in the first quarter this year and didn't cause crude stockpiles to decline fast enough, Barkindo said. The current market downturn is lasting longer than previous slumps, due largely to 700,000 to 800,000 barrels a day of additional supply from the US, he said.

Supply and demand now “show us we are on the right course” to achieving OPEC's goal of reducing stockpiles to their five-year average, he said.

Shale producers “need to join us so that together we can restore stability and maintain it,” Barkindo said. “The global economy itself benefits from stable oil markets.”

BLOOMBERG

Similar News

 

Nels baby company

11 hours ago | Business

Beatha Shitemba's love for all things cute, cuddly and small has led to the creation of a unique baby company that supplies tailor-made bedding products....

Bannerman, Geingos foundation deal sealed

1 day - 24 July 2017 | Business

Bannerman Resources Limited announced the completion of the Namibian partner transaction last week. This sees Bannerman welcome the One Economy Foundation as a 5% shareholder...

Banking sector to remain stable

1 day - 24 July 2017 | Business

Standard & Poor's expects the South African banking industry to remain stable in the face of sluggish economic growth and heightened political risks. But, it...

Rand firms slightly

1 day - 24 July 2017 | Business

The Rand firmed on Friday, recovering some of its losses after a surprise interest rate cut by the central bank on Thursday.The central bank unexpectedly...

Angola still owes Namibia N$2.5 billion

3 days ago - 21 July 2017 | Business

Bank of Namibia deputy governor Ebson Uanguta says Banco Nacional De Angola owes them approximately N$2.5 billion following a currency conversion agreement that was implemented...

Good progress on foundry project

4 days ago - 21 July 2017 | Business

Plans to set up a foundry facility in Otavi are fast taking shape according to local business man André Neethling who presented the proposal during...

Manufacturers awards a go

5 days ago - 20 July 2017 | Business

FNB Namibia Business has renewed their sponsorship towards the NMA Manufacturer of the Year Gala Awards ceremony for the next three years. This year's support...

Supporting SME activities

5 days ago - 20 July 2017 | Business

Small and medium enterprises play a vital role in Namibia's economy with one in five people being employed in the SME sector. Not only do...

Shoprite reports revenue of N$140.7bn

5 days ago - 20 July 2017 | Business

Shoprite managed to grow turnover by 10.4% over the past 12 months, despite challenging trading conditions both locally and in non-domestic markets, the group revealed...

Oil dips on rising US crude inventories

5 days ago - 20 July 2017 | Business

Oil prices fell on Wednesday after a rise in US crude inventories and ongoing high output from Organisation of Oil Producing Countries producers revived concerns...

Latest News

Swapo to deal with Swartbooi

11 hours ago | Politics

JEMIMA BEUKES Swapo secretary-general Nangolo Mbumba says the ruling party will deal with parliamentarian Bernadus Swartbooi over controversial comments he made at the weekend in...

Under-fire governor claims he was...

11 hours ago | Cultural

ILENI NANDJATOOmusati governor Erginus Endjala has apologised for private remarks in which he spoke against the Aandonga people and certain politicians.An hour-long audio recording involving...

Namibian rhino to be sculpted...

11 hours ago | Art and Entertainment

ELLANIE SMIT A life-sized rhino made from Namibian marble and sculpted by a world-renowned artist will soon be auctioned...

State to appeal Hoff conviction

11 hours ago | Justice

FRED GOEIEMAN The State is not satisfied that a woman who had conspired to kill her husband was only found...

Hardap alleviates Neckartal water woes

11 hours ago | Infrastructure

STAFF REPORTERNamWater will funnel crucial water from the Hardap Dam to the Neckartal Dam construction site in order to alleviate critical water shortages there and...

TransNamib manager out on bail

11 hours ago | Justice

CATHERINE SASMANTransNamib’s head of procurement accused of corruption, Chris Simataa, was granted bail of N$60 000 by the Windhoek Magistrate’s Court on Friday and was...

Desert Rose EIA under scrutiny

11 hours ago | Infrastructure

The developers of the Desert Rose project are keen to get the project rolling, having recently submitted an environmental impact assessment (EIA) for the N$8-billion...

Brother nabbed for fondling sister

11 hours ago | Crime

The Namibian police at Okatope in the Oshikoto Region on Sunday arrested a 27-year-old man for allegedly fondling the genitals of his biological sister.The crime...

Two men arrested for ivory

11 hours ago | Crime

Two residents of Katutura who were on Friday found in possession of two elephant tusks briefly appeared in the Magistrate's Court in Windhoek yesterday morning....

Load More