Thursday, May 23, 2024

OPEC oil output rose in February, supported by recovering Nigerian supplies



Nigeria’s production rises by 100,000 barrels per day, the largest increase in the group

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A Reuters poll showed on Tuesday that OPEC oil output rose in February, supported by a recovery in oil supplies in Nigeria, despite major oil producers’ commitment to a broader “OPEC+” coalition agreement to cut production to support the market.

The Organization of the Petroleum Exporting Countries (OPEC) pumped 28.97 million barrels per day this month, up 150,000 barrels per day from January.

Production has fallen by more than 700,000 bpd since September.

Nigeria suffers from crude oil theft and security issues in its oil producing region, which affects production.

The survey found that several crude oil flow sources produced more in February, although output from Nigeria, Africa’s biggest oil producer, was still below the OPEC target.

Output from OPEC+, a grouping of OPEC countries and other partners, has increased for most of 2022 as it recovers from the pandemic.

But as oil prices slumped in November, the group announced its biggest target output cut since the start of the “Covid-19” pandemic in 2020.

OPEC+ decided to cut production targets by two million barrels per day, including about 1.27 million barrels per day from the ten OPEC member countries. Target levels were unchanged in February.

As oil production rebounded in Nigeria this month, the rate of compliance with the agreement on output cuts pledged by countries reached 169%, up from 172% in January, according to the survey.

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A number of producing countries, notably Nigeria and Angola, lack the capacity to pump at agreed levels, leaving oil production below target levels.

The survey found that OPEC’s 10 member countries, which were forced to cut production, pumped about 880,000 barrels per day less than the organization’s target level. The deficit in January was 920,000 barrels per day.

Iraq and Nigeria

Oil production in Nigeria recorded OPEC’s biggest increase by 100,000 barrels per day in February, moving closer to meeting its target of increasing production to 1.6 million barrels per day this quarter.

Iraq, the second largest producer of crude oil in OPEC, is second only to Nigeria in terms of increased production.

According to data from Refinitiv “Eikon” and other companies that track oil movements, Iraq this month increased the volume of its oil exports extracted from the south of the country, compensating for a decrease in its exports from the north of the country. The earthquake in Turkey and Syria temporarily shut down the port of Sayan in Turkey.

The survey concluded that OPEC’s members Saudi Arabia, Kuwait and the United Arab Emirates show a strong commitment to the production target under the “OPEC+” agreement.

Angola recorded the largest decline in oil production, which was 80 thousand barrels per day, due to a relatively limited export program and maintenance activities at the Dalia oil field.

The deal also exempts Venezuela, Libya and Iran from cutting production.

According to the survey, Iran reported an increase in its exports in February, while Venezuela’s oil production rose slightly. Libya’s oil production remained unchanged.

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The Reuters survey aims to monitor market supply and relies on external sources, Refinitiv Eikon data and information provided by oil companies and companies, as well as flow trackers such as Petro-Logistics and Kepler. and consultants.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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