How Libya and Nigeria could upset the Opec apple cart
The success of the cartel’s deal to rebalance the oil market lies in the hands of two African producers exempt from it, writes Julian Lee
London — The shift to the global oil order that happened at the end of 2016 may not be as sticky as you think. Opec’s November 30 deal in Algeria turned oil market expectations for 2017 on their head. Instead of a fourth straight year of rising global oil inventories, stockpiles look set to actually shrink. The plan was to cut output by nearly 1.2-million barrels per day (bpd) in the first half. That agreement was followed by a pledge from a group of non-member countries to trim their production by almost 560,000 bpd. This is still what is expected. These deals led the International Energy Agency and others to forecast that the long-awaited oil market rebalancing could begin almost immediately. But, as the agency warns, only if the agreement is implemented in full. Oil cartel Opec’s members seem fully committed to the cuts, but, as I’ve written, the biggest threat could come from those countries who were left out of the deal. Opec members Libya and Nigeria were exempt from the cuts ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.