Iraq’s oil minister, Jabar Ali al-Luaibi, has indicated that Nigeria and Libya may be asked to cut oil productions in the new supply cut deal to be reached by the Organisation of Petroleum Exporting Countries (OPEC), ThisDay reports.
Speaking at a press conference in Baghdad, Al-Luaibi expressed Iraq’s readiness to join Saudi Arabia and Russia in the proposed extension of the oil deal by another nine months. Al-Luaibi, however, added that the production cut be increased from the current 1.8 million barrels per day, hinting that “small oil producing countries” who were excused from the initial deal may be made to participate in the new deal.
When OPEC and non-OPEC countries made an historic deal in 2016 to cut global crude oil supply, Nigeria and Libya were excused on the basis that both countries were experiencing low production due to geopolitical unrest. OPEC oil ministers will be meeting in Vienna on Thursday to discuss the future of the global crude oil market and prepare for fresh cuts across board. A cut in production for Nigeria could jeopardise the country’s 2017 budget, which has been benchmarked against an oil production of 2.2 million barrels per day.