Nigeria and Libya Cap Not Being Considered For Now

Limiting oil output from Nigeria and Libya won’t be on the agenda when OPEC and other producers meet on Monday, with both African nations saying they’ll need to keep pumping at a higher level before they can join a global effort to stem a supply glut, according to two people familiar with the planned talks.

Nigeria is ready to cap or even reduce supply if it can maintain output of 1.8 million barrels a day, said the two people, asking not to be identified because the information is confidential. Libya isn’t planning to join any agreement to curb output until it reaches its target of 1.25 million barrels a day by December, they said. Producers including Saudi Arabia and Russia are gathering in St. Petersburg, Russia, to assess the effectiveness of an international accord to pare output.

There’s no need for the Organization of Petroleum Exporting Countries and other oil producers to make deeper cuts in supply, Oman’s minister of oil and gas, Mohammed Al Rumhy, told reporters on Monday in St. Petersburg. Kuwaiti Oil Minister Issam Almarzooq said in an interview in the city that producers haven’t discussed deeper cuts and would have further consultations before their joint ministerial monitoring committee meets later on Monday.

Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.