Nigeria May Have To Cut Oil Output.

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Iraq’s oil minister, Jabar Ali al-Luaibi

Iraq’s oil minister, Jabar Ali al-Luaibi, has indicated that Nigeria and Libya may be asked to cut oil productions in the new supply cut deal to be reached by the Organisation of Petroleum Exporting Countries (OPEC).

Saudi Energy Minister Khalid al-Falih said he did not expect any opposition within OPEC to extending the curbs for a further nine months, speaking after he met his Iraqi counterpart in Baghdad.

Al-Luaibi, added that the production cut be increased from the current 1.8 million barrels per day, hinting that “small oil producing countries” who were excused from the initial deal be made to participate in the new deal

OPEC heavyweights Saudi Arabi and Iraq agreed on Monday for the need to cut oil supply by nine months. This would be done so as to support crude oil prices and remove hindrances as countries aim to meet supply this week.

OPEC and non OPEC countries made a deal in 2016 to cut global crude oil supply. Nigeria and Libya were pardoned from the deal as bothe countries were experiencing low production. The minister of state for petroleum resources Dr. Ibe Kachikwu has said Nigeria would be seeking to be exempted for another six months.

A cut in production for Nigeria could jeopardize the country’s 2017 budget, which has been benchmarked against an oil production of 2.2 million barrels per day.

 

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