April 16, 2024

Nigeria oil output surges by 110,000 bpd in September, boosts OPEC’s export level to 27.73mbpd- Survey

 

Oredola Adeola

 

Nigeria’s crude oil export output for September has increased by 110,000 barrels per day (bpd), resulting in the rise in the Organization of the Petroleum Exporting Countries (OPEC) output level, which is up by 120,000 bpd from August to 27.73 million barrels per day (bpd) in September, with a surge from Iran’s output level.

 

 

The Reuters survey released on Monday tracked supply to the market. It was based on shipping data provided by external sources, Refinitiv Eikon 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.

 

 

According to Reuters’ survey shipping data and sources, Nigeria managed a sizable boost in exports in September without any major disruption to shipments.

 

 

The survey hinted that the rise in September was led by Nigeria, with increasing output by 110,000 bpd despite battling with crude theft and insecurity in its oil-producing region.

 

The surge is however well below Nigeria’s current OPEC+ quota which is 1.742 million bpd between January and December 2023.

 

 

Nigeria’s output in July 2023, increased with 100,000 bpd, from 1.081 mbpd recorded to  1.181 mbpd in August 2023 based on OPEC Monthly Oil Market (MOMR) report in September 2023.

 

 

President Bola Tinubu’s aggressive target of achieving 6% economic growth from next year. With sweeping reforms to boost the economy, including the very ambitious target of advancing oil production to 1.6 million barrels a day.

 

 

The President and his team have raised high hopes of lifting oil production to 2.1 million (bpd) by the end of 2024, after oil companies operating in the country committed investments of $13.5 billion in the short term, barring any unforeseen challenges.

 

 

Iran, which has been boosting supply despite U.S. sanctions, also pumped more, with output hitting the highest level since 2018.

 

Reuters stated that output from the 10 OPEC members that are subject to OPEC+ supply cut agreements rose by 80,000 bpd, the survey found. Saudi Arabia and other Gulf members maintained strong compliance with agreed cutbacks and extra voluntary reductions.

 

 

It added that Saudi Arabia kept August and September output close to 9 million bpd, as the largest exporter extended a voluntary 1 million bpd output cut to provide extra support for the market.

The survey stated that Iraq and the United Arab Emirates increased output slightly, while Angolan supply showed the largest decline in the group of 50,000 bpd due to a drop in exports.

 

 

It emphasized that OPEC’s output is still undershooting the targeted amount by about 700,000 bpd, mainly because Nigeria and Angola cannot pump as much as their agreed level.