By Adedapo Adesanya
Nigeria raised its crude oil output by 50,000 barrels per day in May 2024, making the country one of the largest contributors to the Organisation of the Petroleum Exporting Countries (OPEC), according to the latest survey by Reuters.
With this boost, Nigeria’s crude production rose to around 1.3 million barrels per day although still far below the daily production target of 1.78 million barrels outlined in the 2024 budget.
Nigeria has faced challenges in boosting its oil production to a peak of 2 million barrels per day recorded years ago due to threats including oil theft and underinvestment.
OPEC pumped about 250,000 barrels per day more than the implied target for the nine members covered by supply cut agreements, with Iraq accounting for the bulk of the excess.
The survey found the cartel pumped 26.63 million barrels per day last month, up 145,000 barrels per day from April, based on shipping data and information from industry sources.
The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, LSEG flows data, information from companies that track flows – such as Petro-Logistics and Kpler – and information provided by sources at oil companies, OPEC and consultants.
Besides Nigeria, Iraq also increased its production output by 50,000 barrels per day while there were smaller hikes in Saudi Arabia and the United Arab Emirates.
The survey found that only Algeria cut output as a result of oilfield maintenance.
Among those not required to cut output, Iran and Venezuela boosted output slightly. Iran is pumping near a five-year high reached in November after posting one of OPEC’s biggest output increases in 2023 despite U.S. sanctions still being in place.
Several members of OPEC+, which includes OPEC, Russia and other allies, made new cuts in January to counter economic weakness and increase supply outside the group.
The group decided on Sunday to extend the cut into 2025, having earlier extended them until June.
