Libya unwilling to take part in OPEC product cut deals

by Mike Elliot | Thursday, Dec 1, 2016 | 168 views

Libya has expressly indicated that it will not take part in the forthcoming OPEC meeting and subsequently will not be part of the oil production cut deals. Speaking on behalf of the country was the National Oil Corporation representative and Chairman of the corporation, Mustafa Sanalla. This move follows the country’s zeal to restore its economy to the pre-conflict era. According to the chairman, the country’s oil output is already below its targeted level of production as was the case during the era prior to the onset of internal strife.

Initial production prior to the conflict days

Prior to the beginning of conflict, Libya was able to produce crude oil within the range of 1, 000, 000 to 2, 000, 000 barrels per day. But, its daily output has since declined following the onset of political and economic instability. Today, the country is only able to produce crude oil around 500, 000 to 600, 000, which is far below its daily output before political instability set in.
“Libya’s economic situation is very dangerous right now. There is no way we can take part in the OPEC oil production cut deal,” said the chairman as he shrugged off the idea of engaging in the deal. Whether this move by the Libyan oil corporation to dismiss calls to take part in the oil production cut deal will have an impact on the oil futures or not is yet to be learned.

Libya’s current steps

Libya’s oil production corporation has already put in place a number of measures aimed at propelling production to the levels prior to the end of the Gadhafi regime. It has already doubled production from last year and is set to add more barrels to its daily output.

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