Lybia, Nigeria causing problems for OPEC… WSJ

by Jim Colburn • Friday, September 22, 2017

 From Benoit Faucon, Summer Said and Sarah Kent at the Wall Street Journal:”

“Libya and Nigeria have added 550,000 barrels a day of crude-oil production since October, the month OPEC uses as a benchmark for its cuts, according to figures from the International Energy Agency.

That new output wipes out almost half of the cuts achieved by OPEC’s other members over 1.2 million barrels a day, over 1.2 million barrels a day, even more than they promised last year to slash.”

I’m interested the comment by Ian Taylor:

However, Libya and Nigeria are pumping out so much new oil that, combined with robust output from the U.S., they are keeping the world well supplied with crude and weighing down prices, said Ian Taylor, chief executive of Vitol Group, the world’s largest independent oil trader.

Mr. Taylor said he doesn’t see oil reaching $60 a barrel this year. “I would be very surprised to see it with a six in front of it before the end of the year,”he said. “I don’t think it’s going to happen.”

Currently the WTI crude oil option with the most open interest is the Dec $60 call, with 64,201 open… The Dec 45 put has over 50,000 contracts open… These active strikes seem to have traced out an expected trading range for WTI…

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