Opec’s woes ...
Libyan output remains just a fraction of the 1.6mn bpd pumped before the toppling of Muammar Gaddafi in 2011. The nation pumped 270,000 bpd in May, a decrease of 80,000 from the previous month as a dispute between rival governments in the west and east halted tanker loading at the port of Hariga for several weeks. Many of the country’s oil fields and export terminals are in the hands of armed groups with competing interests.
In Venezuela, a severe economic crisis brought about by the slump in oil prices is making it difficult for the state oil company to pay its contractors for work necessary to sustain output, the IEA said. Output last month was 2.29mn bpd, the lowest since 2009, and the Latin American nation is on track for a drop of 100,000 bpd this year, it said.
Some additional output could be provided by Iran, which is restoring exports after nuclear-related sanctions were lifted in January. The Gulf nation will boost output to more than 3.7mn bpd next year, having pumped at a five-year high of 3.6mn in May, according to the IEA. Saudi Arabia, the world’s biggest exporter, could also increase output during the summer months to cover an increase in domestic demand, it said.
After two years of oversupply, the world’s most industrialised countries have more than 3bn barrels of oil in storage. This “enormous inventory overhang” reduces the prospect of “a significant increase in prices,” according to the IEA. The agency estimates that inventories will decline very slightly in 2017, by an average of 100,000 bpd over the year.— Agencies