Opec’s woes ...

Pakistan Observer - - ECON­OMY WATCH -

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

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