OPEC members complaining, say Nigeria is overproducing – OPEC

Opec

 

 

Khalid al-Falih, Saudi Arabia’s energy minister, says some members of the Organisation of Petroleum Exporting Countries (OPEC) have been complaining that Libya and Nigeria are overproducing.

“We have seen a great deal of stability and consistency, both operationally and, more importantly, in terms of security and bringing the sector back to normal,” Falih said after meeting Ibe Kachikwu, minister of state for petroleum resources.

S&P Global Platts reports that Nigeria and Libya would be asked to accept a production cut quota if OPEC can reach a new supply accord at the meeting holding in Vienna on Thursday.

At a December 2016 meeting, OPEC members had agreed to a production cut to battle a supply glut that saw oil prices drop to $25 per barrel. Nigeria and Libya had been exempted from the cuts on the grounds of internal crisis.

The current 1.8 million barrels per day production cut will expire in December.

“We are hopeful that they will come around this time and understand that everyone has to cut together,” an OPEC delegate said, asking not to be named.

The delegate said both countries had made significant production output since the current deal went into force in January 2017, and it was time for them to “contribute”.

Saudi energy minister Khalid al-Falih, OPEC’s de-facto leader, has in recent weeks travelled to Libya and Nigeria to press them on the exemptions, though no public commitments have been announced.

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