Russia calls for Libyan, Nigerian oil decrease

OPEC, non- OPEC countries debate oil prices at key meeting

Russia has called on the Organization of the Petroleum Exporting Countries ( OPEC) to limit oil output rises from its members Libya and Nigeria in the near future, as it hosted a meeting of key OPEC states on Monday to discuss ways to prop up oil prices.

OPEC agreed with several non- OPEC producers led by Russia to cut oil output by a combined 1.8 million barrels per day ( bpd) from January 2017 until the end of March. But OPEC states Libya and Nigeria were exempt from the decision and so their production has been rising.

Rising output from US shale producers has offset the impact of the output curbs, as has climbing production from Libya and Nigeria.

Russia’s energy minister Alexander Novak said that Libya and Nigeria were approaching the moment when their output should be capped due to significant rises in recent months.

“I think that these countries should join other responsible oil producers and contribute to the market stabilization initiative as they reach a stable level of output,” Novak told the Financial Times.

Libya has been producing over 1 million bpd, which is below its capacity of 1.4 million to 1.6 million bpd. However, this figure is near Libya’s record high ever since political unrest erupted in 2011.

Nigeria has also ramped up output in recent months.

The two countries have now increased their production by around 700,000 to 800,000 bpd since the OPEC- led pact was agreed.

OPEC sources said on Saturday that Nigeria could cap output if it managed to sustain production at 1.8 million bpd for 90 days.

But they said Libya could struggle to sustain output at above 1 million bpd and hence a cap was not needed.

Saudi Arabia has signaled it was prepared to accommodate rising output from Libya and Nigeria, but stressed that additional measures should be taken by all producers.

Russia said it was willing to further cooperate with OPEC.

OPEC Secretary General Mohammad Barkindo said market rebalancing would accelerate as demand would pick up in the second half of the year.