OPEC needs more oil from Libya, Nige­ria as mar­ket re­bal­ances

Muscat Daily - - BUSINESS -

St Peters­burg, Rus­sia - The oil mar­ket will need more crude from Libya and Nige­ria as it re­bal­ances at a faster rate in the se­cond half af­ter a slow start, OPEC sec­re­tary gen­eral Mo­ham­mad Barkindo said.

Com­pli­ance with pro­duc­tion cuts by mem­bers of the Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries is ‘ex­cel­lent’, Barkindo told re­porters in St Peters­burg, Rus­sia. Libya and Nige­ria are ex­empt from the cuts and have been boost­ing pro­duc­tion, lead- ing to spec­u­la­tion about whether OPEC will seek to cap their out­put to help re­duce a global glut.

“The re­bal­anc­ing process may be go­ing on at a slower pace than we ear­lier pro­jected, but it is on course, and it’s bound to ac­cel­er­ate in the se­cond half,” Barkindo said on Sun­day.

De­mand is ex­pected to grow by 2mn bar­rels a day in the se­cond half, Barkindo added, without spec­i­fy­ing if he was com­par­ing that with the same pe­riod of 2016 or the first half of this year.

Brent crude prices have de­clined 15 per cent this year on con­cerns that grow­ing out­put in Libya and Nige­ria, as well as the US, is more than mak­ing up for pro­duc­tion cuts by OPEC mem­bers and other oil pro­duc­ers, in­clud­ing Rus­sia.

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