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

 

One Africa Television Chief Executive Officer

2 days ago - 23 February 2018 | Business

Namibia’s first ever free-to-air, independent TV broadcaster in Namibia, One Africa Television was founded in 2003, the brainchild of Namibian photographer and businessman, the late...

The Basics of Branding

2 days ago - 23 February 2018 | Business

Simply put, your brand is your promise to your customer. It tells them what they can expect from your products and services, and it...

Benefits of Keeping Organised At Work

2 days ago - 23 February 2018 | Business

Getting organised comes as second nature to some of us, while others may choose to procrastinate on any “spring cleaning” or organizational tasks. For those...

Poorer ops performance from Namdeb

2 days ago - 22 February 2018 | Business

Namdeb Holdings reported an EBITDA of US$176 million in 2017, nearly 4.4% less than previous year, according to the latest financial results released by the...

Africa Briefs

3 days ago - 22 February 2018 | Business

IMF stops Kenya's standby credit The International Monetary Fund said it stopped Kenya's access to a US$1.5 billion standby credit facility last June after failing...

Electric car market jumpstarts cobalt prices

3 days ago - 22 February 2018 | Business

Joseph SotinelCobalt is hitting historically high prices fuelled by the automobile industry, which needs the rare metal to make light and durable electric batteries.The price...

Company news in brief

3 days ago - 22 February 2018 | Business

Walmart's online struggles spook investorsWalmart Inc, the world's biggest retailer, on Tuesday posted a sharp drop in profit and online sales growth during the critical...

Vedanta seeks to expand zinc output after price rally

4 days ago - 21 February 2018 | Business

Barbara Lew – Vedanta may accelerate expansion of its African zinc operations to take advantage of prices that have reached their highest levels in a...

Company news in brief

4 days ago - 21 February 2018 | Business

Steinhoff must amend 2016 accountsA Dutch court has ordered Steinhoff International to amend its 2016 accounts, handing victory to a former business partner in a...

Still no end to Air Nam MD appointment

5 days ago - 20 February 2018 | Business

The Air Namibia board is unable to appoint a managing director and said it had made a recommendation to its line ministry for a permanent...

Latest News

DebMarine prelims to kick off...

1 day - 24 February 2018 | Sports

The DebMarine Namibia Cup kicks off on 3 March countrywide, with clubs in the first and second divisions battling it out to secure a place...

Outjo donkey abattoir off the...

2 days ago - 23 February 2018 | Agriculture

Plans to build a donkey abattoir in Outjo have folded.Fu-Hai Trading Enterprises, reportedly co-owned by Swakopmund estate agent Shane Quinton Hangula and a Chinese business...

One Africa Television Chief Executive...

2 days ago - 23 February 2018 | Business

Namibia’s first ever free-to-air, independent TV broadcaster in Namibia, One Africa Television was founded in 2003, the brainchild of Namibian photographer and businessman, the late...

3 Key Social Media Trends...

2 days ago - 23 February 2018 | Education

Like it or not, you are recruiting in the world of Google. Just as easily as you can go to the Internet to look things...

Union warns private schools

2 days ago - 23 February 2018 | Labour

JEMIMA BEUKES The Teachers Union of Namibia (TUN) intends to clamp down on fly-by-night private schools that allegedly exploit...

Mwoombola fights back

2 days ago - 23 February 2018 | Justice

Former health permanent secretary Andreas Mwoombola has launched a two-fold application in the Labour Court, in which he wants to court to either halt his...

Elephants cause havoc

2 days ago - 23 February 2018 | Environment

Several elephant herds have over the past few weeks caused havoc on farms in the Outjo District, resulting in hundreds of thousands of dollars in...

The Basics of Branding

2 days ago - 23 February 2018 | Business

Simply put, your brand is your promise to your customer. It tells them what they can expect from your products and services, and it...

How to Communicate Effectively in...

2 days ago - 23 February 2018 | Education

Communication is essential for the smooth running of a business, whether it is between colleagues, with a client or with customers.With technology creating a multitude...

Load More