Adedapo Adesanya
By Adedapo Adesanya
Nigerian crude output fell by 30,000 barrels per day to 1.43 million barrels per day in November, according to data from an S&P Global Commodity Insight.
This was lower than the 1.46 million barrels produced in October by Africa’s largest oil producer and 312,000 barrels per day short of its 1.742 million barrels per day target in 2023.
Angola, Africa’s second-largest oil producer, saw output drop 20,000 barrels per day to 1.13 million barrels per day, according to the survey, compared with its quota of 1.46 million barrels per day.
The drops impacted the wider output of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) to which Nigeria is a member, as total crude production fell 110,000 barrels per day in November to 42.6 million barrels per day.
Nigeria, alongside Angola, has been at the centre of tough OPEC+ negotiations in recent months over production quotas for 2024, and they are among several countries to have had their targets slashed, much to their displeasure.
Nigeria was then handed a 1.5 million barrels per day quota for 2024 by OPEC+ at its November 30 meeting.
Iraq which recorded 110,000 barrels per day contributed the most to the decline in production for November. Despite this, the Middle East producer is still 70,000 barrels per day above its quota.
Iraq, OPEC’s second-biggest member, had its output affected by stormy weather in the month, which prevented loadings from its southern ports, as well as a lingering dispute with the semi-autonomous Kurdistan region over the payment to oil companies.
OPEC’s largest producer, Saudi Arabia, kept November production flat on the month at 9 million barrels per day. This is in line with its pledge to voluntarily cut 1 million barrels per day of crude from June levels to shore up oil prices.
The largest non-OPEC producer in the group, Russia, saw production fall by 20,000 barrels per day to 9.43 million barrels per day.
Saudi Arabia has said it will extend this cut through the first quarter of 2024 while Russia pledged to voluntarily cut exports by 300,000 barrels per day from the May-June average up to the end of 2024. It plans to deepen this cut, which it says includes crude and oil products exports, to 500,000 barrels per day in the first quarter of 2024.
The second-largest non-OPEC producer, Kazakhstan, reduced crude output by 30,000 barrels per day to 1.53 million barrels per day in November, as storms affected loading at its key CPC export route.
OPEC production falls were partially offset by gains in Iran and Venezuela. The two sanctioned countries are exempt from quotas and have seen production grow significantly in recent months.
Libya and non-OPEC Mexico also do not have quotas under the OPEC+ supply accord.
