Certain OPEC Members Threaten Gains From November Production Cut
When OPEC agreed to cut oil production 4% back on November 30th they exempt Libya from cutting due to its internal conflict which has disrupted oil production in the region since 2011. At the time of the deal Libya was producing roughly 575,000 barrels a day however that amount has increased to 708,000 barrels a day today. The Libyan National Oil Co. estimates it could reach 900,000 barrels a day this year which would cancel out the entire production cut contributed by Russia.
Libyan production increases threaten the deal OPEC struck in November meant to increase oil prices. Other countries such as Nigeria and Iraq are also adding to the uncertainty.