Capping Libya, Nigeria Output Won’t Help Erase The Glut

14 Jul 2017   Libya, Nigeria, OPEC

The steady recovery of oil production in Libya and Nigeria in recent months has prompted OPEC to consider limiting the output of the two African producers that are currently exempt from cuts in the deal. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) is gathering in Russia on July 24, and has invited Nigeria and Libya to attend to discuss their current production and short-term plans. According to Kuwait’s Oil Minister Issam Almarzooq, OPEC might ask the two nations to cap output as soon as possible. Talk of Libya and Nigeria possibly capping crude production has had little effect on the market, and analysts doubt that a limit would be lower than the current production of the two countries. Observers think that the two producers would agree to cap output when they reach their short-term production targets, which is 1.25 million bpd for Libya and 1.8 million bpd for Nigeria. […]

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