If anything has to be addressed, he went on to note, it's the fact that the militancy in Libya and Nigeria has abated, causing the resurgence of production in those two countries, which Wang says is undoing any good coming from the OPEC cutbacks. Russia's Energy Ministry has no objections to inviting new members to the Joint OPEC-Non-OPEC Ministerial Monitoring Committee due on July 24 in Russia's St. Petersburg, Minister Alexander Novak said Monday.
"Capping Libya and Nigeria might help but won't cut the supply by much", he added. "Per-barrel prices may fall back into the $20s early next year and average $35 a barrel in the first half of 2018, prompting massive cuts in USA drilling rigs". Opec needs to deliver some "shock and awe" to the oil market for prices to rise, Goldman Sachs Group Inc said.
OPEC, along with Russian Federation and some other major exporters, has agreed to hold production at around 1.8 million barrels per day (bpd) below levels pumped at the end of a year ago.More news: Sky is shaking up the way you pay for and watch sport
A jump in output in Nigeria and Libya, where output had been limited by conflict, has weighed on oil prices.
The purchase comes after Prime Minister Narendra Modi's visit to the USA in June when President Donald Trump said his country looked forward to exporting more energy products to India. Yet, a technical committee holding talks to include Nigerian and Libyan representatives and talk about production plans before the ministers will have their formal discussions. On July 10, 2017, Libya stated that it would attend the meeting on July 24, 2017.
This is while the price for August futures of West Texas Intermediate (WTI) has grown by 0.23 percent and stood at $44.50 per barrel.More news: N rejects JIT's report on Panama Papers case submitted in SC
Crude prices are around 18% below from the levels in the beginning of this year despite Organization of the Petroleum Exporting Countries efforts to reduce production from January.
Nigeria's finance minister met last week with OPEC Secretary General Mohammad Barkindo.
According to Bloomberg, Mr Almarzooq disclosed on the sidelines of an energy conference in Istanbul, Turkey, that the two African nations may be asked to cap their crude output.More news: Trump and Xi at G20 in Hamburg: Time to abandon illusions