By Adedapo Adesanya
An involuntary drop in Nigerian exports helped limit the amount of oil pumped by the Organisation of the Petroleum Exporting Countries (OPEC) in January, a Reuters survey shows.
Although the aggregate output rose to a seven-month high after the group and allies agreed to ease record supply curbs further, Africa’s largest producer was instrumental in capping the surge.
According to the survey, the 13-member cartel pumped 25.75 million barrels per day (bpd) in January, which is more than 160,000 barrels per day from December and a further increase from a three-decade low reached in June.
OPEC+, which groups OPEC and other producers led by Russia, agreed to pump more from January 1 and returns to output restraint again from February amid fears of a slow demand recovery.
The latest supply pact has helped oil to an 11-month high above $57 per barrel this year.
It was found that in the review period, the biggest supply increases came from Saudi Arabia and Iraq, the group’s top two producers, reflecting their higher quotas.
Iraq, which is a key laggard, is still making almost all of its pledged OPEC+ cuts, having struggled to do so in the past.
OPEC+ agreed to pump an extra 500,000 barrels per day in January, of which OPEC’s share is about 300,000 barrels per day, as world demand recovers to an extent from the coronavirus crisis.
The group has delivered just over half that amount, the survey found. As a result, the OPEC producers bound by the deal made 103 per cent of pledged cuts in January, up from 99 per cent achieved in December.
The third-largest gain in OPEC output came from Iran, which is exempt from OPEC cuts and hoping to raise exports this year if US sanctions are eased, the survey found.
Its exports have been rising since the fourth quarter, although they are still a fraction of the level in 2018 when former US President Donald Trump tightened sanctions.
Among the countries showing lower output, the biggest drop was in Nigeria after force a majeure was declared on exports of Qua Iboe, one of Nigeria’s largest production streams. Operator Exxon said on January 22 the force majeure was lifted.
Libya, also exempt from making cuts, is pumping slightly less after a brief blockade of some ports by guards.
Business Post had reported that recovery in the North African country last year had helped push OPEC output higher.
The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from tanker trackers such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.
