OPEC Raises Oil Production To Highest Since April 2020

Hamilton Nwosa
Writer

Ad

Why Wike Should Resign or Be Sacked: A Call to Organized Civil Society in Nigeria to Uphold Anti-corruption Standards with Consistency, By Frank Tietie

By Frank Tietie The revelations by Nigerian social crusader, investigative journalist, and activist Omoyele Sowore regarding the current Minister of the Federal Capital Territory, Nyiesome Wike, are serious and warrant the attention of all Nigerians who care about the integrity of the country. Sowore has alleged that Wike laundered funds and concealed the purchase of…

Dangote Refinery Slams PENGASSAN, Describes Order as ‘Economic Sabotage’

By Abiola Olawale In an escalating labor showdown, the Dangote Petroleum Refinery has fired back at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), criticising the latter’s order on Saturday. This is as the refinery owned by Africa’s richest person, Alhaji Aliko Dangote described PENGASSAN's order to cut crude oil and gas…

Intimate Affairs: ‘I don’t want a mother-in-law,’ By Funke Egbemode

By Funke Egbemode Tola doesn’t wish anybody dead. She just doesn’t want to go through what her mother went through in the hands of her grandmother. She had been told that she might just be lucky and end up with a husband with a kind mother. But she’s scared, I believe, irredeemably, by the trauma…

Ad

OPEC has been pumping in August the highest volume of crude oil since April 2020, after the OPEC+ alliance agreed to ease the production cuts by 400,000 barrels per day (bpd) every month beginning in August, the monthly Reuters survey showed on Tuesday.

The 13-member-strong OPEC group has been producing 26.93 million bpd in August, an increase of 210,000 bpd compared to the estimated output in July, according to the Reuters survey of OPEC sources, sources at oil firms and consultants, and tanker-tracking data.

Although OPEC continued to raise its oil production, the gain in August over July was lower than anticipated because of production and export outages in some member states.

The rise in OPEC’s oil production comes after the OPEC+ group decided on July 18 that it would start returning 400,000 bpd to the market every month beginning in August until it unwinds all the 5.8 million bpd cuts. The group agreed to extend the existing deal from April 2020 through the end of December 2022.

The 10 OPEC members bound by the pact share 253,000 bpd of the 400,000-bpd monthly increase in OPEC+ production, according to OPEC numbers seen by Reuters.

So, in August, the biggest producers of OPEC in the Gulf raised their oil production. Top producer Saudi Arabia added 180,000 bpd of supply, as per the Reuters survey. This was the biggest increase among OPEC members. OPEC’s no.2 Iraq boosted exports, while the United Arab Emirates (UAE)—the holdout in the OPEC+ talks in July—raised its production by 40,000 bpd in line with its quota for August.

Outages in Nigeria and Libya, however, limited OPEC’s supply to the market, according to the survey. Shell declared in mid-August force majeure on Forcados exports from Nigeria, which saw the largest decline in supply, 100,000 bpd. Libya, exempted from the OPEC+ cuts, also saw lower production in August due to a pipeline leak early in the month.

NB: Tsvetana Paraskova wrote this article for Oilprice.com

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp