Economics
OPEC Caps for Libya and Nigeria Wouldn't Be Enough to Fix Oil Glut
- Two nations added enough output to offset Saudi Arabia’s cut
- OPEC and its allies would need to review every nation’s quota
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A proposal that Libya and Nigeria could have to accept limits on their crude production probably wouldn’t be enough to put OPEC’s faltering efforts to eliminate a global supply glut back on track.
The two African nations -- exempt from the supply curbs agreed last year due to internal strife -- have added enough production in the last two months to offset Saudi Arabia’s cut. Should the pair accept a cap at their desired levels of output, OPEC and allies including Russia would still have to adjust their own quotas to compensate for the increase, said Nordine Ait-Laoussine, president of Geneva-based consultants Nalcosa and former energy minister of Algeria.