with Agency report
24 September 2017, Sweetcrude, Lagos — The Organisation of the Petroleum Exporting Countries, OPEC, has said it will look into export data of member countries in order to curb supply and further boost prices.
Kuwaiti Oil Minister Essam al-Marzouq who spoke over the weekend after the OPEC/Non-OPEC meeting of oil ministers in Vienna, said the ministerial monitoring group would continue watching production data, but would also propose a review of export data as well.
His statement came on the heels of an agreement by OPEC officials during the meeting that exports have a more direct impact on the international supply than production.
The supply pact sets production limits for participating OPEC and non-OPEC states but puts no restrictions on export levels, giving chances for some producers to keep exports relatively high by dipping into their stored reserves, according to al-Marzouq.
Shipping data showed that Nigeria’s crude oil exports for August was 2 million barrels per day.
As at June, the country’s export was 1.6 million b/d, giving a differential of 400, 000b/d increase in August.
Meanwhile, according to OPEC and other oil producers on Friday, the group may have to wait until January before deciding whether to extend their output curbs beyond the first quarter of 2018.
OPEC and Non-OPEC producers have cut production by about 1.8 million barrels per day (bpd) since the start of 2017, helping lift oil prices by 15 percent in the past three months.
OPEC and its allies are also considering extending the deal beyond the end of March when it is due to expire.
Russia’s energy minister also said no decision was expected before January, although other ministers suggested such a decision could be taken before the end of this year.
“I think we can return to this issue not earlier than January next year,” Russia’s Alexander Novak said when asked about a timeline for any decision on extending the pact to curb supplies.
Other ministers said a decision on extending cuts could be taken in November when OPEC holds its next formal meeting.
“In November, we’re going to take decisions,” Venezuelan Oil Minister Eulogio Del Pino told reporters, adding the group was “evaluating all the options” including an extension to the pact.
Benchmark Brent crude LCOc1 is now trading at more than $56 a barrel, although it is still half the level it was in mid-2014.