Tension soars in global oil market

Baku. 15 February. REPORT.AZ/ There is tension in the global oil market as some countries want to increase oil production. 

Report informs citing the Forexpf.ru, according to the Ministry of Energy of Nigeria, local companies plan to increase production by up to 250,000 bbl/day by 2020.

The companies said they wanted to increase production despite the fact that Nigeria participated in the OPEC+ agreement. If such a step is taken, it may be possible for other countries to start producing oil more than the quota, which will endanger the OPEC+ agreement.

Warren Patterson, an expert on raw material markets in ING Bank, said: "If Nigeria has an opportunity to increase production, I do not see it as a reason to avoid it. If Nigeria exceeds quota, other producers can take the same step. The more OPEC+ agreement is extended, the more chances for it to collapse”.

Along with Nigeria, Iraq has also developed its infrastructure to boost production. Iran's energy minister said his country was able to boost production over several days. Also, as new wells start operating in Angola, production is expected to increase by up to 250,000 bpd until the end of the year. Notably, by the end of the year as a result of increase in shale oil production in US, it is expected that the country will become the world leader in oil production.