• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Banking

      FBN Holdings appoints new Non-Executive Director

      December 11, 2019

      Finance

      Insurance sector to attract N200bn post-recapitalization – Onyema

      December 10, 2019

      Finance

      Uganda holds key interest rate to help shield economy

      December 9, 2019

      Finance

      CBN gets new director of currency operations

      December 6, 2019

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Trade

      US agrees to lower tariffs on some Chinese imports in trade deal

      December 13, 2019

      Europe

      European Union agrees to cut emissions to net zero by 2050

      December 13, 2019

      Frontpage

      Stocks pare loses on skepticism around reports of US tariff delay

      December 10, 2019

      Business News

      Standard Chartered removes charges for ATM withdrawals, transfers

      December 10, 2019

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Energy

      Nigeria LNG, partners sign Train 7 gas supply agreements

      December 13, 2019

      Concerns as NEITI unveils oil blocks’ owners

      December 13, 2019

      Energy

      Who will fund Rosneft’s $157bn mega oil project?

      December 11, 2019

      Energy

      84 women graduate from Intels’ empowerment programme in Rivers 

      December 11, 2019

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analysis

      On Nigeria’s cyber security skill gap

      December 10, 2019

      Analysis

      Nigeria’s resilience against global risks

      December 3, 2019

      Analysis

      Getting the Board on board GRC implementation

      December 3, 2019

      Analysis

      How much money do you need?

      December 3, 2019

Frontpage

Nigeria, Libya get OPEC soft landing on increased production

June 1, 2017744 views0 comments

Nigeria and Libya have received a soft landing from the Organization of Petroleum Exporting Countries (OPEC) over both countries’ current overproduction that has seen market concerns as oil prices dropped lower early Thursday.

The organisation is maintaining a strict implementation of an agreed production cuts, but has failed to state when cuts would be applicable to both countries.

Mohammad Barkindo, OPEC Secretary-General, while responding to questions at an economic forum in St Petersburg, Russia Thursday June 1, 2017 reiterated the outcome of the Vienna meeting which extended cuts for another nine months.

Image result for Mohammed Barkindo, OPEC Secretary-General,
Mohammad Barkindo, OPEC Secretary-General

“Too early to say when production caps could be imposed on Libya and Nigeria, they have a lot of issues to solve,” he was reported as saying.

On oil price decline, Barkindo said “we have no issues with people taking positions in the market, we are focusing on fundamentals.”

The oil exporting countries had on May 25, 2017 extended their current production limit by nine months as against one year that was initially rumoured.

The members of OPEC and 11 other oil producers led by Russia have been pumping 1.8 million fewer barrels per day (bpd) than last year since January, in a rare alliance designed to bolster prices.

“As far as OPEC is concerned, keeping the level of the cut for another nine months will help to balance the market,” said Jabbar Ali Hussein al-Luiebi, the  Iraqi oil minister.

However, Nigeria and Libya were exempted from the limits agreed at the Algiers Accord last year, which came into effect January 1, 2017. But other exporting countries are miffed that the production levels by both countries are causing a glut thereby lowering prices and had wanted both countries to be given limits or at best lift the limits.

But last week, OPEC upheld and extended the limits for nine months, excluding Nigeria and Libya, whom it claimed are having contending issues.

“We don’t want to put a burden on countries that cannot afford longer cuts,” Kuwaiti Oil Min­is­ter Issam Almarzooq said, in response to the nine months extension instead of the 12 months initially planned.

The Algiers Accord and 171st Ministerial Conference specifically reduced OPEC member production by around 1.2 mb/d to bring its ceiling to 32.5 mb/d, effective 1st of January 2017. The duration of the agreement was six months, extendable for another six months to take into account prevailing market conditions and prospects. Equally key non-OPEC countries, including the Russian Federation were made to agree on a reduction of 600 tb/d production.

Russia, according to Dmitry Medvedev, its prime minister, is fully committed to complying with output cuts.

Before the production cut was decided late last year, OPEC had been flooding the market with oil in the hope of hurting US producers by lowering global prices. North American production methods relied on higher prices because they are costlier than those used in OPEC countries.

However, the fracking method used to extract oil from rocks in the US has recently become more efficient and therefore less vulnerable to low prices.


By Business a.m. live staff

Related posts:

Ghana emerges as Nigeria’s biggest trade partner for the first time
FinTech Partners: Nigeria miles away from financial inclusion
Concerns as NEITI unveils oil blocks’ owners
Nigeria falls short of economic growth expectation – IMF
National Assembly transmits 2020 budget to Buhari
NLC gives govs Dec 31 deadline for new minimum wage implementation
Banks refund N76.7bn, $20.9m to customers —CBN 
MTN, Glo, Airtel, 9Mobile, ntel, lose N119bn revenues monthly
Who will fund Rosneft's $157bn mega oil project?
Nigeria to spend N750.81bn on fuel subsidy in 2020
Share on Facebook Tweet Email
TagsLibya Mohammad Barkindo Nigeria OPEC OPEC Secretary-General
PreviousLafferty daily briefing
NextEthiopia turns off internet nationwide as students sit for exams

Leave a comment

- Cancel reply

MARKET DATA

Recent Posts

  • Nigeria Daily Street Market Exchange Rate (December 13th 2019)
  • Gold fails to crumble as trade deal hit meets dollar’s decline
  • Nigeria LNG, partners sign Train 7 gas supply agreements
  • US agrees to lower tariffs on some Chinese imports in trade deal
  • Ghana emerges as Nigeria’s biggest trade partner for the first time

World

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

Ethiopia considers sale of minority stakes in telecoms, airline to foreign investors

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Nigeria 9Mobile seeks concessional foreign exchange access, others to meet financial obligations

Frontpage July 26, 2017

1
2

Nigeria’s SEC finally suspends Oando Plc shares over petitions on financial recklessness

Frontpage October 18, 2017

3

We may start selling petrol above N145 –IPMAN

Frontpage April 2, 2019

4

Nigeria equities market dives as sell-offs continue

Frontpage February 12, 2018

5

Facebook’s WhatsApp messenger hit by temporal outage, investigation ongoing

Frontpage November 3, 2017

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.