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Nigeria, Libya exempted as OPEC extends cut for nine months

By on May 27, 2017

Nigeria and Libya have been exempted further, as the OPEC and non-OPEC producing members agree to extend the crude oil production cut by another nine months to allow further rebalancing of the market.

The decision took place yesterday after the 2nd ministerial meeting of the two groups at headquarters of OPEC in Vienna, Austria.

President of the OPEC Conference and minister of energy of Saudi Arabia, Khalid A. Al- Falih said the extension is necessary to further consolidate the gain by all stakeholders and the period would allow the market to achieve the five year average for stocks.

“The two countries are still well below the expected output quota, it is in our interest to be friendly and brotherly, and exempt them so that they get the maximum revenue from the amount produced. It’s not appropriate to discuss any cut for them anytime soon”, the President of OPEC conference said.

He said the groups had looked at the various options including deeper cuts, 6 month and at the end they both agreed on the nine-month which was more acceptable looking at the circumstance of the market.

 

[Daily Trust]