OPEC+ Running Out of Production Capacity

OPEC+ Running Out of Production Capacity
OPEC+ Running Out of Production Capacity

The OPEC+ alliance of oil producers is running out of capacity to pump more crude, including its biggest member Saudi Arabia, according to Nigeria’s petroleum minister.
“Some people believe the prices to be a little bit on the high side and expect us to pump a little bit more but at this moment there is really little additional capacity,” said Nigeria’s Minister of State for Petroleum Resources Timipre Sylva in a briefing with reporters, Bloomberg reported. 
“Even Saudi Arabia, Russia, of course Russia, is out of the market now more or less.” 
The extended group will meet next Thursday to decide whether to proceed with a planned August oil production increase. Over the last year, the oil group has been boosting output in a series of planned increases.
“At this moment I think the prices are firming up and I do not think there will be any surprises in OPEC in August,” Sylva said.  
Nigeria, Africa’s biggest producer, has struggled with declining production for years, with international majors selling onshore and shallow-water fields to Nigerian independent producers for more than a decade. 
The country pumped 1.49 million barrels a day in May, according to a Bloomberg survey, with a quota allowance to produce 1.77 million barrels a day in June and 1.80 million barrels in July.

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