Nigeria and Libya may cap crude output

istanbul — Libya and Nigeria, which have both boosted oil production since they were exempt from global cuts this year, may be asked to cap their crude output soon in an effort to help rebalance the market, Kuwait Oil Minister Issam Almarzooq said.

Opec and non-Opec producers have invited the two African nations to their committee meeting in St. Petersburg, Russia, on July 24 to discuss the stability of their production, Almarzooq said on the sidelines of an energy conference in Istanbul. Almarzooq is chairman of the committee monitoring the compliance of Opec and non-Opec suppliers with output cuts that started in January and have been extended to March.

“We invited them to discuss the situation of their production,” Almarzooq said.

“If they are able to stabilise their production at current levels, we will ask them to cap as soon as possible. We don’t need to wait until the November meeting to do that,” he said.

Crude sank into bear territory last month amid concerns the cutbacks by producers of the Organisation of Petroleum Exporting Countries, Russia and other allies are being partially offset by a rebound in supply by Libya, Nigeria and U.S. shale output. Libya and Nigeria were both exempt from the cuts due to their internal strife.

The two countries came into focus after they seemed to resolve some of the political challenges that had slashed their production. Libya’s oil output has climbed to more than 1 million barrels a day for the first time in four years. Nigeria’s production rose 50,000 barrels a day in June.— Bloomberg