Nigeria will not exceed oil production target - Barkindo

Crude Oil Prices dip after Crude Oil Prices dip after OPEC report OPEC report

Rising output from US shale producers has offset the impact of the output curbs, as has climbing production from Libya and Nigeria.

It's no secret that the production cuts initiated in January by the Organization of Petroleum Exporting Countries (OPEC), Russia and their allies have done little to raise the price of crude oil.

In May, OPEC producers and 11 participating non-OPEC countries including Russian Federation formally ratified the agreement first drafted last November to cut supplies by 1.76 million barrels per day for an extension.

Oil prices rallied to the highest levels of the session in North American trade on Monday, after Saudi Arabia pledged to make deep cuts to its crude exports in August in an effort to ease a global supply glut.

Crude prices rose after the meeting.

The announcements came after a frenzy of meetings here in St. Petersburg over the weekend and a meeting of big producers such as Russian Federation at the Four Seasons Hotel.

These inflationary measures saw September contracts for both WTI and Brent up on 1.3% and 1.1% on the day, respectively.

Mr. Falih is under pressure to keep the OPEC deal from falling apart and raise prices higher, the Journal has reported.

Alongside Saudi Arabia and non-Opec Russia, the committee includes Kuwait, Venezuela and Algeria - all Opec members, and Oman, another non-Opec participant. The current price is about 10 cents above where it was a year ago.

OPEC sources told Reuters on Saturday that Nigeria could cap output if it managed to sustain production at 1.8 million bpd for 90 days.

"Oil prices are at risks of trading lower if the OPEC meeting concludes with nothing new brought to the table". In recent weeks, oil has slipped below $50 a barrel.

The report further noted: "The development relative to the preceding month reflected the fall in inflow through the Bank". Combined, the total oil and gas rig count in the USA now stands at 950 rigs, with oil rigs falling by one and gas rigs falling by one.

The limit on Nigeria is less likely to have immediate market effects.

According to a report in The Wall Street Journal, Nigeria has agreed to cap production at 1.8 million barrels a day, roughly equal to its June production of 1.78 million barrels. Total volume traded was about 36 percent above the 100-day average.

The two sides made a decision to remove about 1.8 million barrels per day (bpd) from the market in the first half of 2017, which equals 2 percent of global production, using October 2016 as the baseline month for reductions.

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