By Adedapo Adesanya
Nigeria recorded the biggest decline in oil production among the Organisation of the Petroleum Exporting Countries (OPEC) output cut quota in August, according to a Reuters survey.
The country’s output dropped by 100,000 barrels per day, the survey said, noting that it occurred as exports from the Forcados terminal were under force majeure due to a leak on August 15.
A force majeure provides temporary reprieve to a party from performing its obligations under a contract upon the occurrence of an uncontrollable event.
Oil output, however, rose to its highest since April 2020, as the involuntary losses from Nigeria and others limited the gain as the group’s top producers further eased supply curbs under a pact with its allies. Output has risen every month since June 2020, apart from in February this year
OPEC has pumped 26.93 million barrels per day the survey found, up 210,000 barrels per day from July’s estimate.
OPEC and allies, known as OPEC+, have been easing record output cuts agreed in April 2020 as demand recovers and have gradually eased the cuts with the agreement allowing a further 400,000 barrels per day production increase in August from all members, of which 253,000 barrels per day is shared by the 10 OPEC members covered by the deal, as Libya, Iran, and Venezuela are exempted.
While the remaining 10 OPEC members raised output by more than this, OPEC as a whole has under-delivered on the expected month-on-month rise, the survey found. Members are still pumping less than called for under the latest deal.
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.
OPEC compliance with pledged cuts was 115 per cent, the survey found, a level unchanged from July.
Saudi Arabia delivered the biggest increase of 180,000 barrels per day, as it further raised output as part of the August OPEC+ boost. It was joined by Iraq and Angola.
Others include The United Arab Emirates added 40,000 barrels per day in line with its new quota, while output in Kuwait rose by 20,000 barrels per day.
The OPEC+ will meet tomorrow, Wednesday, September 1 to decide the next level towards the output cut, market analysts expect that the level will remain unchanged.
Modupe Gbadeyanka