OPEC+ Gets Scant Relief from Vaccine
Libya, which is exempt from the agreement to restrain production, has revived output to the highest level in almost a year after a truce in its civil war. The North African nation tripled supply to 450,000 barrels a day last month, and is now pumping above 1 million a day.
The case for extending curbs, though persuasive, could still run into opposition.
The United Arab Emirates, which has recently chafed at its OPEC commitments, emphasized on Nov. 9 that consensus is necessary for the deal to be amended. “We have to be all convinced that tweak is required,” Energy Minister Suhail Al Mazrouei said.
One flash-point may be the millions of barrels of outstanding cuts still due from some members, which were supposed to be completed by the end of the year.
OPEC+ nations that flouted their output quotas in the initial months of the agreement, such as Iraq and Nigeria, have been tasked with “compensation cuts.” After making some tentative efforts at these, Baghdad defiantly ramped exports back up last month.
Iraq has often rebelled against OPEC-mandated supply limits as it rebuilds an oil industry and economy scarred by decades of conflict and sanctions.
As Baghdad’s finances come under acute distress, OPEC delegates doubt the country will make further efforts to atone. With Saudi Arabia’s steely energy minister determined that all remaining debts are paid, the group may face a bumpy path to a final agreement.
--With assistance from Olga Tanas, Dina Khrennikova, Manus Cranny and Yousef Gamal El-Din.
© 2020 Bloomberg L.P.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension