The Nation Newspaper

Tag: output

  • OPEC, non-OPEC Joint committee praised for output cut

    The Joint Organisation of Petroleum exporting Countries (OPEC), and the non-OPEC Ministerial Monitoring Committee (JMMC) have commended members’ compliance with the oil production cut that has boosted price.

    At its inaugural meeting at the OPEC Secretariat in Vienna, Austria, chaired by the Minister of Oil, Electricity and Water, Kuwait, Issam A. Almarzooq, the JMMC agreed to facilitate the exchange of joint analyses and outlooks, which will provide valuable input to the evaluation of the conformity.

    The JMMC comprises three OPEC-member-countries – Algeria, Kuwait and Venezuela – and two non-OPEC countries – the Russian Federation and Oman. OPEC’s Research Division briefed the Committee on oil market developments that have occurred since the Declaration of Cooperation was approved last December 10.

    The JMMC discussed the framework for the realisation of the voluntary production adjustments on the Declaration of Cooperation.

    Russian Energy Minister, Alexander Novak, who is the Committee’s Alternate Chairman, and Khalid Al-Falih, President of the OPEC conference spoke at the event.

    The JMMC was established, following OPEC’s 171st Ministerial Conference decision of November 30 and the declaration of Cooperation made at the joint OPEC-non-OPEC ministerial meeting held last December 10.

    At the December meeting, 11 non-OPEC oil producers cooperated with the 13 OPEC member countries to accelerate the rebalancing of the global oil market through an adjustment in combined production of 1.8 million barrels per day.

    The resulting declaration, which came into effect on January 1, 2017, is for six months, and is extendable for an additional six months pending the status of supply and demand, as well as global inventories.

    The JMMC is chargd with ensuring that the objectives of OPEC’s 171st Ministerial Conference decision and the declaration of cooperation are achieved through successful implementation of voluntary adjustments in production.

    Reaffirming its commitment to joint cooperation for the achievement of a lasting stability in the oil market in the interest of oil producers and consumers, the Committee agreed to full and timely conformity to the agreement with the following stipulations:

    The OPEC Secretariat will present a monthly production data report on OPEC member countries’ crude oil and of the participating non-OPEC oil liquid production to the JMMC by the 17th of each upcoming month. Evaluation of conformity to the respective country production adjustment will be based on production data only.

    Each of the five member-countries of the JMMC will nominate one technical person, to form a Joint Technical Committee (JTC), which shall include the Presidency of the OPEC Conference and shall assist the Ministers.

    The JTC will cooperate with the OPEC Secretariat to prepare the monthly report for the JMMC and meet monthly before submitting their report to the JMMC.

    The JMMC will communicate monthly, after the 17th of each upcoming month, to consider the reports presented by the JTC and the OPEC Secretariat, as well as meet after the 17th of March 2017 and before the OPEC Conference in May 2017.

    The JMMC will issue a monthly press release on the progress towards the implementation of the OPEC 171st Ministerial Conference decision and the declaration of Cooperation.

    The JMMC will report to the Conference on the effect of the implementation of the OPEC 171st Ministerial Conference Decision and the Declaration of Cooperation on the market.

    The JMMC expressed its satisfaction regarding the strong level of commitment to the agreed framework.

    The Committee expressed its appreciation to OPEC’s host country, the Government of the Republic of Austria, as well the City of Vienna, for their excellent arrangements made for the meeting.

  • Saudi pledges commitment to oil output cut

    Saudi Arabia has said it will adhere to its commitment to cut output under the global agreement among oil producers, its energy minister Khalid al-Falih has said, expressing confidence that the Organisation of Petroleum Exporting Countries’(OPEC’s) plan to prop up prices would work.

    Khalid al-Falih, according to Reuters, spoke at an industry event in Abu Dhabi. al-Falih said he was encouraged by signs of commitments by other participants in the deal since it took effect on January 1.

    “Many countries are actually going the extra mile and cutting beyond what they’ve committed. I am confident about the impact and I am very encouraged about those first two weeks,” al-Falih said.

    The comments are the latest in a series of assurances from officials that participants will follow through on the agreement intended to help get rid of oil supply glut. Compliance with the deal will be a key influence in early 2017 on oil prices, which at $56 a barrel are about half their level of mid-2014.

    Under the accord, the OPEC and Russia and other non-members will curtail oil output by nearly 1.8 million barrels per day (bpd), initially for six months.

    Last week, Falih said Saudi output had fallen below 10 million bpd, meaning Saudi Arabia had cut production by more than the 486,000 bpd which it agreed to late last year under the producers’ agreement.

    Al-Falih said: “We will strictly adhere to our commitment,” adding that during the six-month agreement, Saudi output would either be at the kingdom’s target under the deal or “as is the case now, slightly below.”

    Producers were unlikely to extend the deal beyond six months and would allow market forces to prevail once the supply glut is eradicated. “My expectations are that the rebalancing that started slowly in 2016 will have its full impact by the first half,” he said.

    “Once we get close to the five-year average of global stocks and inventories we will basically let our foot off the brakes and let the market do its thing.”

    OPEC complied with up to 80 per cent of its last output cut in 2009, according to International Energy Agency data. A committee of OPEC and non-OPEC ministers to monitor the issue is meeting on Sunday.

    Kuwait also said last week it had cut production by more than it committed to and OPEC’s secretary general told Reuters he was confident of the level of commitment and enthusiasm among producers who agreed to the deal.

  • Oil rises as customers brace for output cuts

    Oil rises as customers brace for output cuts

    Oil prices rose for the first time in three days yesterday, following news of Saudi supply cuts to Asia, but persistent doubt over output reductions and signs of rising shipments from other producers kept gains in check.

    Brent crude futures were up 41 cents at $54.05 a barrel while U.S. West Texas Intermediate crude futures were up 39 cents at $51.21 a barrel.

    Brent has surrendered nearly 40 per cent of the gains made between late November and early January. Analysts, however, said the slide was unlikely to become more aggressive, given the likelihood of Saudi Arabia and its Gulf neighbors at least sticking to their pledge to cut output.

    “Few envision that Brent crude at sub-$50 a barrel is a viable price (in the first half of 2017) amid Organisation of Petroleum Exporting Countries (OPEC) production cuts tightening up the market,” SEB commodities strategist Bjarne Schieldrop said.

    Whether “last night’s low of $53.58/barrel turns out to be the low point remains to be seen. However, we do think that buying in the territory between the current price of $53.88/b and down to $50/b is probably as good as it gets for buyers in H1.”

    Saudi Arabia, the world’s top oil exporter, has told some of its Asian customers that it will reduce their crude supplies slightly in February.

    But there is still plenty of oil to fill the gaps left by the OPEC. North American drilling is on the rise, while European and Chinese traders are shipping a record 22 million barrels of crude from the North Sea and Azerbaijan to Asia this month.

  • Nigeria’s oil production disruptions dip OPEC’s output

    Nigeria’s oil production disruptions dip OPEC’s output

    Crude oil production of the Organisation of Petroleum Exporting Countries (OPEC)  dipped by 310,000 barrels per day (bpd) in December, as unplanned disruptions in Nigeria reduced the group’s supply before deliberate cuts take effect this month.

    Nigeria’s daily output dropped by 200,000 bpd to 1.45 million in December, ending three months of gains as the nation struggled to restore capacity after a year of militant attacks on oil infrastructure. Saudi Arabia’s production fell by 50,000 bpd while Venezuela declined by 40,000.

    “Crude production in Nigeria in December was once again severely impacted, mostly due to a field maintenance as well as a strike of port workers,”  Chief oil analyst at London-based consultant Energy Aspects Ltd., Amrita Sen, explained by e-mail.

    The decline in December comes as OPEC, which controls around 40 per cent of global supply, is planning to curb output in a bid to boost oil prices. The organisation reached a historic deal last month with Russia and other non-members to cut global production by almost 1.8 million bpd starting this month.

    Brent crude, the global benchmark, advanced 52 per cent last year, the biggest annual gain since 2009. Prices were down 0.3 per cent at $56.31 a barrel as of 6:39 a.m. London.

    Overall, OPEC-excluding Indonesia which suspended its membership on Nov. 30-pumped 33.1 million bpd in December, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data. That compares with a November total of 33.41 million bpd for the 13 continuing members of the group, or 34.14 million including Indonesia’s daily output of 730,000 barrels.

    Under the terms of last month’s agreement, OPEC’s total output including Indonesia would fall to 32.5 million bpd. Compliance with that target will be judged against independent estimates compiled by OPEC, which can vary from the Bloomberg News survey.

    In Nigeria, which along with Libya is exempt from making cuts because of conflict,  maintenance on the Erha field and strike action by workers at Exxon Mobil Corp.’s operations in the country disrupted both exports and production, Sen said. A year ago, the country was pumping almost 2 million bpd.

    No cargoes of the Agbami crude grade were shipped in first half of December, while three out of the four Erha cargoes originally scheduled to load were deferred, with two of those moved into January, according to loading programs obtained by Bloomberg.

    Iran, Kuwait and Angola each reduced output by 20,000 barrels a day while Algeria and Iraq dropped by 10,000, the survey showed.

    Libya pumped an extra 50,000 barrels a day last month as the Northern African nation reopened two of its biggest oil fields and loaded the first cargo in two years from its largest export terminal.

  • OPEC to seal output cut deal

    OPEC to seal output cut deal

    Members of the Organisation of Petroleum Exporting Countries (OPEC) will resolve some knotty issues standing in the way of the agreement to cut production at its meeting holding in Vienna, Austria on November 30.

    The members agreed in Algiers, Algeria on September 28 to limit supply with special conditions given to Libya, Nigeria and Iran, whose output has been hit by wars and sanctions. The agreement was tagged “Algiers Accord.”

    According to Reuters’ sources, details are to be finalised when OPEC ministers meet.

    The sources said OPEC officials were working to nail down details of their plan to limit oil supply and gaps over some sticking points are narrowing, a sign of progress in finalising the exporter group’s first such deal since 2008.

    With two weeks to the meeting, differences persist over details and the prospect of a supply glut persisting next year has weighed on oil prices, which are below $47 a barrel. Crude reached a 2016 high near $54 after the September deal.

    “It is difficult at some points but I don’t see any deadlock. What happened in Algeria gave a lot of hope and impetus and I think people are committed to that,” a source told Reuters.

  • Boost for rice output at UNDP forum

    Boost for rice output at UNDP forum

    How to improve rice production, among others, topped discussions at the United Nations Development Programme (UNDP) rice value forum held in Minna, the Niger State capital. DANIEL ESSIET reports.

    How to enhance rice production dominated discussions at the United Nations Development Programme (UNDP)   forum held in Minna, the Niger State capital.

    Held under UNDP’s Agribusiness Supplier Development Programme’s (ASDP’s) Rice Supply Chain, the roundtable was organised by the Federal Ministry of Agriculture and Rural Development, UNDP and Nigeria Incentive-Based Risk Sharing for Agricultural Lending (NIRSAL).

    Rice farmers, processors, marketers and researchers, representatives of some stakeholders proffered solutions to problems.

    They listed weaknesses in the value chain as fragmented and small- scale production, poor application of advanced science and technology and low level of mechanisation of production stages, adding that post-harvest technology was not being given proper attention.

    They said rice seeds used by farmers were left overs from the previous season; and the ratio of farmers using certified rice seeds has remained low. These problems, the participants said, led to high cost of production, low quality and poor competitiveness.

    UNDP Inclusive Growth Unit Team Leader Dr Robert Asogwa said the forum aimed to provide solutions to the problems to ensure a secure future for the rice sector.

    Asogwa said UNDP would continue to contribute to rice farming with enhanced agronomic practices and technologies for smallholder farmers.

    He said UNDP was ready to work with the government and the private sector to boost rice production through crop improvement, disease and pest management, sustainable and profitable farming, and capacity building  for farmers.

    According to him, the organisation had made some headway in cassava and had started getting positive results from the projects farmers were undertaking.

    He expressed the hope that the joint effort would improve the productivity and practices of thousands of smallholder rice farmers.

    NIRSAL Executive Director Awoshafe Babatunde said the organisation facilitated the N65 billion loans to farmers.

    To address the problem of agricultural finance, he said NIRSAL was working with banks and microfinance institutions to make long-term commitments of capital for developing agricultural markets.

    For him, credit alone is not enough, but that an holistic approach is needed, including a range of financial and non-financial services.

    He added that NIRSAL supports  value chain finance (VCF) approach and that efforts have been  made through creative financing and partnerships to facilitate investments in agricultural finance.

    Agriculture and Rural Development Minister Chief Audu Ogbeh said implementation of government programmes would help reduce post-harvest losses.

    Represented by the Director of Planning in the Ministry, Musa Alhassan, Ogbeh said: “The Federal Government has banned the importation of rice and there is surplus across the country. This means there is result and it shows that the farmers and all government’s policies are aiding agriculture produce.

    “We are rice sufficient in the country by 2017. Nigeria will be self-sufficient in rice production. We are getting close as there is improvement on what we have been getting before. This will boost our economy,” he added.

    Japan International Cooperation Agency (JICA), Nigeria Office Programme Officer Dr Umar Halilu said a significant increase in rice productivity and production could only be achieved through improvements in production systems, so,  the techniques farmers use must be enhanced.

    He urged farmers to adopt affordable processing technologies provided by the agency to  enhance the rice value chain, reiterating JICA ’s commitment to providing technical support and advice  to rice farmers.

    Niger State Agricultural and Mechanisation Development Authority  Acting Managing Director Abubuka Sadeeq said rice was the key crop grown by mostly smallholder farmers in Niger.

    He said the state was ready to collaborate with UNDP and other agencies  to enhance capacity building and efficiency in rice production, ensure farmers adopted technologies and innovations in rice farming.

    ASDP has three-fold objectives: first, to improve the quantity and quality supply of agricultural products by farmers and SMEs to markets; second, to provide smallholder farmers and SMEs with support in accessing the agricultural supply chains of lead firms; third, to contribute to national economies by developing agricultural products that meet market quality standards, ASDP Agribusiness Specialist, Dr Nelson Abila said.

    The approach for a rice multi-stakeholder platform recognises that  producers, processors and retailers should not compete as individual entities, rather, they should collaborate as strategic value-chains competing with others in the market place.

    Senior Lecturer, Department of Agricultural Economics, Dr Opeyemi Ayinde, maintained that with increasing challenges in rice farming, including limited arable land, impact of climate change, labour shortage and limited resources, there was the need to harness innovative solutions and farming technologies.

     

    Milling

    The majority of successful mills are large scale located away from most rice farming areas.

     

    Adding value

    According to the participants, adding value to rice would increase income and  encourage more farmers to add value to the produce.

     

    Credit

    Farmers often lack access to independent credit, both for farming as well as after harvesting. The forces them to sell immediately after harvesting, when supply is abundant and prices low.

     

    Production

    Women Rice Co-operative Union Co-ordinator, Kogi  State, Mrs Esther Audu, said farmers cultivated rice/cotton on plots ranging from an hectare to a few.

    To grow rice, she noted, many farmers relied on family or hired labour. Some farms are mechanised, using the latest technology to optimise fertiliser application and minimise superfluous irrigation.

    She emphasised the need for the  government to make tractors available for farmers and also distributed seedlings, fertiliser and other inputs to improve their productivity.

    Mrs. Audu identified lack of mechanisation, low quality inputs and poor funding as hindrances to rice production.

    According to her, peasant women play a key role: planting, weeding, transplanting and harvesting.

    With the deluge of cheap imported rice in the market, rice farming is slowly becoming non-viable, and with the loss of it various farm jobs women do.

    According to her, many farmers are not benefiting from the Central Bank  of Nigeria’s (CBN’s)  Anchor Borrowers programme.

    Other farmers of the scheme decried the late disbursement of input, which they said, affect their harvest during the rains.

    For agriculture to improve and for the nation to attain inclusive growth, participants noted that  banks should lend to agriculture.

    External Relations Director, Nigeria Markets11, Mr Godson Ononiwu, said the country has agricultural potential, though the price, quality, and supply of its rice were yet to meet international standards. The main problems facing the industry, he said, were a lack of adequate warehouses and seeds, as well as an inefficient market system.

  • ‘Nigeria’s gas output can deliver 32 Gw of power’

    If dysfunctional gas facilities are fixed and fiscal and regulatory policy issues in the gas subsector addressed, the current gas production can deliver 32 gigawatts (32,000Mw) of power, oil and gas industry operators have said.

    This was contained in a communiqué at the end of the three-day international gas conference of the Nigerian Gas Association (NGA) held in Abuja.

    It was signed by the association’s president, Mr. Dada Thomas, and made available to The Nation

    Giving the verdict, they said there is a need to urgently fix the dysfunctional gas-to-power value chain, to attract investment to the sector. There is also the need for the government to respect the sanctity of contracts and agreements.

    According to them, the illiquidity of the power market requires urgent attention. “We suggest a rethink of the quality and capitalisation of players, and a readjustment of the tariff structure may be required. Without a doubt, we must find creative securitisation mechanisms that improve bankability,” they added.

    On gas policy, the communiqué noted that the conference recognised the role of the NGA in creating sustained awareness on issues, and the opportunities within the gas sector. It posited that the association should continue to work with the government and stakeholders to harness gas as a catalyst for sustained economic development with the right regulations and policies.

    “The emerging gas roadmap by the government is a welcome development that could provide the much-needed clarity on issues of ownership, infrastructure development, gas gathering and pricing.

    “The association will mobilise the sector to do a proactive review of the Draft Gas Policy to provide a win-win document that will attract the required investment for the sector. The intent would be the reduction of lead-time between policy formulation, legislation and implementation to enhance the competitiveness of Nigeria as a preferred gas investment destination,” it said.

    According to the communiqué, the conference recognised the need to nurture the willing buyer-willing seller commercial model that will encourage and sustain the gas value chain, from the reservoir to the consumer.

    It also saw the need to encourage investment in exploration for gas to increase national reserves and facilitate access to such reserves by competent operators. It recognised the threat to security in the Niger Delta and acknowledged the progress being made to address the menace. “We agree that the sector must join hands with government to support intelligence based security arrangements.

    “NNPC Joint Venture funding continues to constrain rapid development. We support the efforts towards finding alternative funding mechanisms.

    “There is slow decision making by policy makers and regulators and conference strongly recommends a collaborative model to find fast track processes and solutions that achieve the desire for Nigeria to be a gas-based industrialised hub meeting both local and export demands.

    “Conference believes that financing is possible if the right conditions for success such as fixing the gaps in the value chain, avoiding policy summersault, honouring sanctity of contracts, stabilisation of the exchange rate, long term view of fiscal policies are in place.

    “There exists the need for approximately $51 billion in investment in the sector to cover gas exploration, processing, transportation and general infrastructure. Whilst acknowledging the funding constraints of government at this time, we still agree that such investments must be Government led. It might require creative schemes to leverage the existing assets and infrastructure,’’the communique added.

    “The need to establish a Gas Promotion Council that will address investment opportunities in the sector was raised. The NGA puts itself forward to midwife same if it finds government’s interest,” the communiqué added.

  • OPEC, others head for oil output freeze

    OPEC, others head for oil output freeze

    Members of the Organisation of Petroleum Exporting Countries (OPEC) and other oil producing countries are in discussion to strike an output-freeze deal next month in Algiers, Algeria as OPEC’s biggest producers are already pumping flat-out, the group’s former president said.

    While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, Chakib Khelil said in a Bloomberg Television interview. Khelil steered OPEC in 2008, the last time it implemented an output cut, which was announced in Algeria in December of that year. In a separate interview, former Qatari Energy Minister Abdullah bin Hamad al-Attiyah was convinced there is a need for an accord.

    “All the conditions are set for an agreement,” Khelil said from Washington. “Probably this is the time because most of the big countries like Russia, Iran, Iraq and Saudi Arabia are reaching their top production level. They have gained the entire market share they could gain.”

    While oil prices have advanced since OPEC announced it would hold informal talks in the Algerian capital next month, analysts from UBS Group AG to Commerzbank AG doubt any freeze deal will be completed, and comments from Saudi Arabia and Nigeria have kept expectations low. Talks collapsed in April as Saudi Arabia insisted Iran would have to limit its production, a condition the country rejected as it ramped up exports previously curbed by sanctions.

    As producers are almost pumping at full-tilt, the impact of any accord to prevent further increases would essentially be “psychological,” Khelil said. That would nonetheless have a benefit for the market, according to the Algerian, who was also the country’s energy minister from 1999 to 2010. The global crude oversupply is already diminishing, and markets will probably reach “complete equilibrium” next year, Khelil said.

  • ‘Cashew output ‘ll grow by 30%’

    Cashew nut production is to rise due to renewed focus by the government and demand for the commodity, the Executive Secretary, Nigeria Export Promotion Council (NEPC), Segun Awolowo, has said.

    He spoke at a workshop on cashew processing and Market Information Systems in Lagos.

    Represented by a Chief Trade Promotion Officer, Mr Kazim Ahmed, Awolowo said: “Recent government’s efforts in the development of additional cashew plantations, distribution of improved seedlings to farmers, enforced good agricultural practices are all going to increase output of cashew nuts in Nigeria by 30 per cent in the next two years.”

    Nigeria is rated as the fourth largest producer of cashew nuts in Africa and seventh in the world, with the bulk of its Raw Cashew Nuts (RCN) and cashew kernels exported to Vietnam and India. They are both leading processors of cashew nuts in the world.

    Awolowo noted “in 2011, Vietnam imported over $140million worth of RCN and $46million worth of cashew kernel from Nigeria”, adding: “In recent years, export of Nigeria RCN has been increasing.”

    With a projected output of 175,000 metric tonnes of RCN in this trading season, Nigeria is expected earn over $200million at an average  price of $1,200 per tonne in the international market. Awolowo affirmed the increasing output of Nigeria’s cashew with the production of 150,000 and 130,000 metric tonnes in 2014 and 2013.

    To further improve Nigeria’s cashew production, Awolowo stated that working with the USAID-Nigeria NEXTT project, the council has developed a cashew sector strategy for the cashew value chain in Nigeria. The cashew strategy is expected to improve the quality of Nigeria’s RCN and enhance the transparency of the cashew industry by developing a Market Information System (MIS).

    He added that other measure put in place by the Federal Government to improve export of RCN includes “enforcement of good agricultural practices at farmers’ field, setting up of up-country warehouses and drying centres in production areas to ensure strict compliance to moisture content as quality requirements and establishment of the Nigeria Commodity Exchange market for transparent trading system.”

  • OPEC output up by 300,000 bpd on Nigeria’s recovery

    OPEC output up by 300,000 bpd on Nigeria’s recovery

    Organisation of the Petroleum Exporting Countries’ (OPEC) oil production increased by 300,000 barrels per day (bpd), with Nigeria contributing additional 150,000 in June.

    OPEC’s overall output of 32.73 million bpd shot the body’s output to an eight-year high with Libya tentatively recovering along with steady increases from Saudi Arabia and Iran, according to an S&P Global Platts survey of OPEC, said oil industry officials.

    “OPEC’s 300,000-barrel-per-day output rise, sends a strong message over its unwavering market share strategy,” said Eklavya Gupte, Senior Editor for S&P Global Platts.

    “If the situation persists, the case for a return to some kind of production cap may gain traction,” he added.

    Venezuela acted as a check on the overall level though, as the crisis-hit country’s production continues to hit fresh lows. The bloc’s top producer, Saudi Arabia, increased its output further to produce an average 10.33 million bpd in June in order to meet domestic demand. Last summer, Saudi Arabia produced as much as 10.45 million bpd.

    A spike in air-conditioning demand has traditionally boosted the volume of crude burned directly in the kingdom’s power plants during the summer months. In addition, domestic refining also picked up.

    The sharp increase in OPEC’s June production affirms a continuation of its market share strategy.

    Meanwhile, OPEC added a new member in the month, Gabon, and next month Nigeria’s Mohammed Barkindo will take over as the group’s secretary-general.

    This comes at a critical juncture for OPEC, after a spate of infighting and disagreements. Analysts said these two decisions which were taken at the June meeting could lay the groundwork for future cooperation on bigger issues.

    The largest rise in output came from Nigeria, where production rose 150,000 bpd to 1.57 million bpd, due largely to the return of its largest export grade, Qua Iboe, as production and exports resumed at the end of May.

    Nigerian production hit 30-year lows in May as militancy continued in the country’s oil rich Niger Delta.

    The situation remains volatile. Barely 10 days after a 30-day ceasefire deal with the Federal Government, militants claimed a round of fresh attacks in the Niger Delta at the start of July, marking a major setback after weeks of respite.

    Libyan oil production rose 60,000 b/d to 310,000 b/d in June as exports from the eastern port of Marsa el-Hariga resumed in late May after a three-week blockade caused by a dispute between the country’s two rival national oil company factions.

    The North African country’s production remains less than a quarter of its 1.6 million bpd production capacity, but early in the month Libya’s National Oil Corp agreed to unify its rival administrations under one management structure, a positive step for the country’s beleaguered oil sector.

    Analysts, however, said production could only see a sustained increase if the new national unity government unites with several other factions to reopen the country’s two largest oil terminals — the 340,000 bpd Es-Sider and 220,000 bpd Ras Lanuf facilities.

    Iranian output in June climbed to 3.63 million bpd, its highest since June 2011, and very close to pre-sanctions levels, according to Platts OPEC survey data.

    Iran’s oil output rise has been swift since sanctions were lifted on January 16, increasing 740,000 bpd compared with last December.

    The decline in Venezuelan crude output accelerated further, with production falling by 120,000 bpd in June to 2.15 million bpd, the lowest since February 2003, S&P Global Platts data showed.