Libya is stepping up its oil production just less than two weeks ahead of OPEC’s scheduled meeting in which they will decide whether to prolong production cuts in order to sponge up a supply glut persisting in the market.
The member of the producer cartel with Africa’s biggest oil reserves is producing over 814, 000 bpd, partially due to increasing output from two fields that resumed crude production last month, according to an executive of the National Oil Corp.
Libya was pumping out around 700, 000 bpd at the end of April, according to Jadalla Alaokali, a board member of the firm. Libya’s crude output is currently at its highest point since October 2014, when it producers 850, 000 bpd.
The comeback in Libyan production is concurrent with initiatives by the OPEC and other suppliers to curb output. OPEC ministers plan to convene on May 25 to decide whether to extend reductions in their output beyond the first half of the year. The recent jump in Libyan production, along with the surge in North American shale output and indications of recovery in Nigerian production is seen to erode the impact of OPEC’s scheme to rebalance the market and shore up prices.
The material has been provided by InstaForex Company – www.instaforex.com
May 15, 2017 at 06:26AM
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