OPEC September oil production increases thanks to Nigerian rebound, OPEC + boosts
- OPEC production in September increases by 420,000 bpd from August
- Compliance with OPEC + reduction commitments drops to 114%
- Nigeria posts biggest production gain for OPEC
- TABLE detailing production by country: [USN:L8N2QW2PX]
LONDON, Sept. 30 (Reuters) – OPEC oil production in September hit its highest level since April 2020, according to a Reuters survey, as Nigerian production recovered from unintended losses and major The group’s producers have further eased supply restrictions as part of a pact with its allies.
The Organization of the Petroleum Exporting Countries pumped 27.31 million barrels per day (bpd), according to the survey, up 420,000 bpd from the revised August estimate. Production has increased every month since June 2020, except in February.
OPEC and its allies, known as OPEC +, are easing production cuts made in April 2020 as demand picks up, although due to a lack of capacity among some members, OPEC + does not give the full boost promised. This has helped support oil prices, which are trading near $ 80 a barrel and near a 3-year high.
The OPEC + deal allows for an increase in production of 400,000 bpd in September from all members, of which 253,000 bpd is shared by the 10 OPEC members covered by the agreement, according to figures from the ‘OPEC as seen by Reuters.
While OPEC’s 10 members increased production by more than that in September, they are still pumping less than expected in the latest deal. OPEC’s compliance with the promised cuts was 114%, according to the survey, up from 115% in August.
OPEC + is meeting on Monday to review its policy and is expected to reconfirm plans for the monthly increases. Read more
NIGERIA, SAUDI BOOST
The largest increase in September was recorded in Nigeria, where production increased by 170,000 bpd according to the survey and even more according to some participants.
“We are seeing an increase of over 200,000 bpd after Forcados and other issues in August,” said a company following the OPEC offer.
The Forcados terminal’s export outlet was in force majeure in August, limiting supply. Despite this, Nigeria pumps nearly 100,000 bpd below its OPEC target, as underinvestment restricts production.
The second largest increase came from the main exporter, Saudi Arabia, which further increased supply as part of the OPEC + boost in September. Iraq, Kuwait, the United Arab Emirates and Algeria recorded smaller increases.
Production has declined or has not increased in Angola, Congo, Equatorial Guinea and Gabon, according to the survey, due to a lack of production capacity to increase supply.
Iran, which has managed to increase its exports since the fourth quarter despite US sanctions, recorded slightly higher production this month, according to the survey.
The country is exempt from OPEC supply restrictions due to the sanctions, although a stronger recovery in exports depends on progress on talks to revive its 2015 nuclear deal with world powers. These discussions are currently at a standstill. Read more
Among the two other producers exempted from restrictions, Libyan and Venezuelan production also increased slightly.
The Reuters survey aims to track market supply and is based on shipping data provided by external sources, flow data from Refinitiv Eikon, information from trackers from tankers such as Petro-Logistics and Kpler, and information provided by sources from oil companies, OPEC and consultants. .
Additional reporting by Ahmad Ghaddar; Editing by Elaine Hardcastle
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