OPEC extension of production cuts suggest that 2018 production may increase slig

The OPEC extension of production cuts actually suggests that,

Unless production increases in Nigeria and Libya are offset by reductions in production in other member countries, the group next year

Will slightly increase oil production.

However, during the meeting, member states said that Nigeria and Libya said to the group that they will

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Next year's output is limited to 2017 levels. The representative said that this means that the production in Nigeria is about 180

Million barrels / day, Libya is about 100 million barrels / day.

OPEC has not officially announced production targets in Nigeria and Libya. OPEC has been issued before

The draft communique does not make reference to these two countries.

Of course, the increase in implied output will not have a big impact on the global balance of supply and demand. Even if the ratio

Asia and Nigeria are producing at full capacity, and their impact offset by lower production elsewhere. E.g

Venezuela's output declines as the economy weakens.

The following table is based on a Reuters survey, OPEC production agreement came into effect when the yield target, Niger

Production control in Asia and Libya at an implied output target of 2.8 million barrels / day, and in November and October