OPEC needs more oil from Libya, Nigeria as market rebalances
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.