Market re-balances at faster rate in H2 after slow start: OPEC

ST PETERSBURG, RUSSIA — The oil market will need more crude from Libya and Nigeria as it re-balances at a faster rate in the second half of the year after a slow start, OPEC Secretary-General Mohammad Barkindo said Sunday.

Compliance with production cuts by members of OPEC is “excellent,” Barkindo stated in St Petersburg, Russia. Libya and Nigeria are exempt from the cuts and have been boosting production, leading to speculations about whether the Organisation of Petroleum Exporting Countries will seek to cap their output to help reduce a global glut.

“The re-balancing process may be going on at a slower pace than we earlier projected, but it is on course, and it’s bound to accelerate in the second half,” Barkindo told reporters in St Petersburg, according to Reuters.

Six OPEC and non-OPEC ministers will meet tomorrow, Monday, in St Petersburg to discuss the market outlook and compliance with output cuts.

Source: Emirates News Agency