Oil prices fell by 1 percent on Wednesday as rising Libyan production fueled concerns that OPEC-led output cuts are being undermined by several countries that are excluded from the deal. Certain OPEC members, such as Libya and Nigeria, and shale oil producer the United States are not part of the agreement, leaving room for further production growth from these exporters. Libya’s oil production is expected to rise to 800,000 bpd this week, state-run National Oil Corporation said on Monday, which is likely to boost the country’s exports. Shipping data on Thomson Reuters Eikon shows that, excluding pipeline exports, Libya has sent out an average of 500,000 bpd of crude oil so far this year, compared with only 300,000 bpd shipped on average in 2016. Saudi Arabia’s Energy Minister and his Russian counterpart said on Wednesday that cooperation between OPEC and non-OPEC producers is seen lasting beyond next March, when the current output deal expires.

Source: Egypt Independent May 31, 2017 09:45 UTC