BY SAM OTUONYE
As Nigeria continues to struggle to meet its OPEC’s quota its crude oil production again fell by 40,000 barrels per day in the month of September.
This was contained in a report by American news media, Reuters, based on a survey of OPEC’s yet to be published September oil production output report.
The report also indicated that other OPEC members, particularly Libya, which is faced with challenges of oil output in September, as ongoing unrest disrupted the country’s supply.
Nigeria which has been struggling to meet ramp up oil production to not only meet OPEC’s quota but also meet local demands for Nigeria’s refinery, has been hovering around 1.2 to 1.3 million barrels per day since the beginning of the year.
According to OPEC’s last report, Nigeria produced 1.35 million bdp as of August 2024.
Generally, OPEC’s oil production dropped to 26.14 million barrels per day (bpd) last month, a decline of 390,000 bpd compared to August’s revised total, primarily due to Libya’s reduced output.
A standoff over control of Libya’s central bank significantly impacted its oil production, cutting supply by 300,000 bpd. This disruption pushed oil prices higher amidst concerns about global demand and increased non-OPEC supply.
Although Libya’s output is expected to rebound following the resolution of its central bank leadership dispute, Iraq recorded the next largest decline as it seeks to improve compliance with its OPEC target.
Despite this, Iraq still pumped 90,000 bpd above its quota. In contrast, Iran, exempt from OPEC’s production limits, saw a slight increase, reaching near its highest output since 2018, despite ongoing U.S. sanctions.
Overall, OPEC production remained about 130,000 bpd above target, largely due to Iraq’s excess output.