Nigeria’s Oil Output Rises as OPEC Supply Drops in August

By Adedapo Adesanya

Nigeria witnessed a relative increase in its production level despite the Organisation of the Petroleum Exporting Countries (OPEC) recording a decline in oil output in August.

A survey by Reuters said the 12-member cartel pumped 26.36 million barrels per day last month, down 340,000 barrels per day from July, the survey found. This was the lowest total since January 2024.

This happened as unrest disrupted Libyan supply and added to the impact of ongoing voluntary supply cuts by other members and the wider OPEC+ alliance.

However, despite this, there was a small increase in Nigeria’s oil output as Africa’s largest oil producer boosted exports in the tumultuous month. The publication did not give a figure.

The survey found that OPEC pumped about 220,000 barrels per day more than the implied target for the nine members covered by supply-cut agreements, with Iraq still accounting for the bulk of the excess.

A drop in Libyan exports and production amid a standoff between political factions over control of the central bank has helped boost oil prices and, sources say, increased the prospect that OPEC+ will proceed with a planned output hike from October.

Libya provided the largest supply loss last month 290,000 barrels per day. Output was disrupted at the Sharara field early in the month and at more fields towards the end, trimming output to an average of 900,000 barrels per day, the survey found.

Libya is exempt from OPEC+ agreements to limit production. Other declines came from Iraq, which lowered exports in August according to the survey and is seeking to boost compliance with its OPEC target, and from Iran which is also exempt.

Iran has been boosting exports in the last few years despite U.S. sanctions remaining in place and is still pumping close to the highest levels since 2018.

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 Kpler and Petro-Logistics, and information provided by sources at oil companies, OPEC and consultants.

Meanwhile, eight of the 22 OPEC+ members are scheduled to boost output by 180,000 barrels per day in October, the first stage of unwinding production cuts of 2.2 million barrels per day, which is around 2 per cent of global daily demand.