The Organization of Petroleum Exporting Countries (OPEC) experienced an increase in oil output in February, led by the recovery of Nigeria’s oil production, according to a Reuters survey released on Tuesday. This rise in output occurred despite the commitment of major producers to cut production under the OPEC+ alliance’s agreement aimed at supporting the market.
According to the Reuters survey released on Tuesday, OPEC pumped 28.97 million barrels per day (bpd) in February, which is a 150,000 bpd increase from January. However, the current output is still over 700,000 bpd lower than the level recorded in September. Nigeria’s oil production has been affected by crude theft and security issues in the oil-producing region, resulting in lower output. While many crude streams exported more in February, Nigeria is still producing much less than its OPEC target. The rebound in Nigerian oil production in February increased compliance with the OPEC+ agreement to 169% of pledged cuts, according to the Reuters survey. This was a slight decrease from the 172% compliance recorded in January. However, despite the increase in compliance, output is still significantly below the targeted amounts because some producers, particularly Nigeria and Angola, lack the capacity to produce at the agreed levels.
The production surge though little will boost the country’s economy. However, its impact on the prices of AGO and MGO is yet to be ascertained.
Source: Oriental News, Nairametrics
