Nigeria’s crude oil production rose to 1.97 million barrels per day, its highest since January 2015, according to data from S&P Global Platts. The country’s output was buoyed by the Egina deepwater oilfield, which started production six months ago and is already pumping close to its capacity of 200,000 bpd.
The June figure was 110,000 bpd rise from May as none of Nigeria’s crude export grades are currently under force majeure. The Organisation of Petroleum Exporting Countries pumped 30.09 million bpd in June, steady from May, an S&P Global Platts survey of industry officials, analysts and shipping data found.
Much of the month’s decline was said to have come from Iran and Libya, and were offset by the Saudi and Nigerian increases, leading to the lower compliance rate. OPEC’s compliance with its production quotas fell sharply in June, as output gains in the month by Saudi Arabia and Nigeria, along with Iraq’s continued flouting of its cap, shrank the bloc’s margin for remaining within the bounds of its supply cut agreement.
The 11 members covered by quotas remain over-compliant with their committed cuts, but only by 40,000 bpd, for a conformity rate of 104 per cent, the survey found. That is down from May’s rate of 117 per cent. Among OPEC’s members with quotas, Nigeria and Iraq were the least compliant.
OPEC and 10 non-OPEC allies, led by Russia, last week extended their 1.2 million bpd production cut agreement through March 2020, as they aimed to prop up oil prices, and had touted their impressive compliance as evidence of their firm resolve to rebalance the market.
With US sanctions likely to shut in more production from Iran and Venezuela, which are exempt from the deal, the remaining members will have less room to raise output to make up for any losses and stay under their collective ceiling.
Saudi Arabia saw its production jump by 150,000 bpd in June to 9.85 million bpd, assisted by sharp growth in crude exports along with a rise in direct crude burn amid soaring summer temperatures, the survey found.
This is the kingdom’s highest output since March, but it remains 460,000 bpd below its quota of 10.31 million bpd. Iran pumped its fewest barrels since September 1988 as output remained thwarted by stringent US sanctions. The country saw its production fall by 100,000 bpd to 2.35 million bpd, with dramatic fall in its crude exports somewhat offset by a significant build in crude storage, according to survey panelists.
Iraqi crude output fell to 4.77 million bpd from a record high of 4.82 million in May on lower exports from its southern terminal, the survey found. Iraq’s quota under the deal is 4.51 million b/d.
Angola, OPEC’s second-largest African producer, saw its output slide to 1.39 million bpd in June, its lowest since joining OPEC in 2007, according to the survey. The country saw output tumble due to maintenance at some of its key fields along with ongoing technical and operational problems.
Libya pumped 1.08 million bpd in June, a fall of 40,000 bpd from the previous month, the survey found. Technical issues as well as maintenance at some oil infrastructure pushed output lower.