OPEC mulls oil production caps for Libya, Nigeria – MarketWatch

OPEC is considering putting a limit on how much oil members Nigeria and Libya can pump, cartel delegates say, as surging production from those countries is complicating the cartels plans to influence crude prices.

Libyas crude-oil output has surged to over one million barrels a day, up from 400,000 in October, while Nigerias output has risen to 1.6 million barrels a day, up 200,000 barrels a day since October, according to JBC, a Vienna-based energy-industry consultancy.

Those increases have unnerved the Organization of the Petroleum Exporting Countries, the 14-nation cartel that joined forces last year with Russia and other big non-OPEC producers in an agreement to withhold almost 1.8 million barrels of oil CLQ7, -2.61% LCOU7, -2.41% from market every day. Libya and Nigeria were exempted from the obligation to cut because their industries had been crippled by civil unrest.

Nigeria is definitely becoming a worry for us, said a delegate to OPEC from a Persian Gulf Arab country. OPEC delegates from several other countries echoed his concerns.

An expanded version of this report is on WSJ.com.

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OPEC mulls oil production caps for Libya, Nigeria - MarketWatch

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