OPEC Must Reduce Oil Supply

The Organization of Petroleum Exporting Countries needs to make a turnaround and cut down supply by at least 800,000 barrels daily to avert the return of Iranian oil from hampering crude prices, according to the OPEC governor from Libya.

Samir Kamal, who is also planning head of Libya’s Oil Ministry, insisted that OPEC bloc members must review their strategies carefully.

Kamal said it is important to agree in reducing production levels especially after Iran has declared to increase oil production.

The oil exports of Tehran have been cut back by nearly ½ since 2012 because of sanctions by Western powers.

Kamal speaks for Libya as member of the board of governors. However, this group only influences but it does not make OPEC policy decisions.

When OPEC met last November, Libya was one of the member-nations that called for a reduction of oil production. The organization will reconvene on June 5 to formulate policies.

OPEC members like Venezuela and Iran did not dispute the bloc's no-cut decision in 2014. Yet, they had qualms regarding this verdict and supported supply reduction.

Meanwhile, 18 oil producers from Africa are pushing for output controls to boost prices which have allegedly dropped to levels that can set off social unrest.

These nations are not members of OPEC. However, they do not have the backing of Saudi Arabia and OPEC members from the Gulf region.

Saudi Arabia already boosted production to a record high while Kuwait declared OPEC will stick to its present policy during the bloc’s next meeting.