Libya Official–OPEC May Need Production Cuts
Libya’s top oil official, Shokri Ghanem, stated that OPEC may need to cut production further, but did not mention any specific numbers, saying, “It is too early to say how much needs to be cut … I don’t want to start throwing numbers out without consulting my colleagues – we want a consensus.”
Crude oil prices are down 66% from a record $147.27 a barrel set on July 11th, with slowing global demands leaving a 1 million barrel-a-day oversupply that needs to be removed by the end of the year.
OPEC is set to discuss compliance with a previous cut, on November 29th in a meeting in Cairo. “We won’t have production data yet, but at least we can consult with each other. It does not mean we can’t take a decision,” Ghanem said. He also stated that they are “worried about the direction of prices” and that they “need to see if the oil price is falling because liquidity is leaving the market, or if there is too much oil in the market.” He concluded by mentioning that OPEC’s main goal is to stabilize the market.
Roy Dickson
