Production Caps for Libya, Nigeria Under Consideration

Production Caps for Libya, Nigeria Under Consideration

The war between OPEC and USA shale drillers is killing older oil fields at the fastest pace in 25 years - which could hurt the industry once the current oil glut has faded, consulting firm Rystad Energy believes.

As per the Goldman Sachs, without a important fall in oil inventories or a decline in US drilling and production, USA crude could drop below $40 per barrel.

Recent research by PIRA Energy shows the United States will quadruple its crude oil exports to volumes greater than those of most OPEC members within three years. Brent crude, the benchmark for more than half the world's oil, slipped 0.6 per cent to $46.59 in London.

However, the Oil Minister of Nigeria, Ibe Kachikwu, expressed unavailability to attend the meeting due to another commitment.

What those figures suggest is that not only can USA oil producers weather sub-$50 oil prices, they can thrive with them thanks to advances in technology and lower costs.

The U.S. West Texas Intermediate crude August contract rose 0.43% to $44.59 a barrel on Tuesday. While the kingdom is still cutting slightly deeper than required, as it has done all year, it increased production in June to the highest level since the accord began, boosted exports by even more, and this week cut prices for Asian buyers.

More news: Moeen four-for gives England 97-run lead

The two countries have been exempt from a deal to cut 1.8 million barrels per day in production. Seemingly out of nowhere, there's been a most unexpected resurgence in oil production for Libya and Nigeria.

The Joint Ministerial Monitoring Committee - set up to evaluate compliance with December's output deal between Opec and 13 non-member producers, led by Russian Federation is scheduled to meet on July 22 to 24 in either Moscow or St Petersburg to discuss how things stand.

NOC Chairman Mustafa Sanalla added Libya could assist with efforts to stabilize the market by informing OPEC about its plans to restore production. In May, OPEC and some non-OPEC producers extended a deal until March 2018.

Crude has declined 18% this year amid concerns that rising world supply will outweigh production cuts from OPEC.

Nigeria's finance minister met last week with OPEC Secretary General Mohammad Barkindo.

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