Sopuruchi Onwuka

Nigeria’s total crude oil output in the month of June increased by 39,000 barrels per day, according to estimates by Rystad Energy which tracks crude oil trade among producers, traders and refineries across the world.

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The increase in Nigerian output did not however cause any major in the overall performance of the league of producers under the OPEC plus alliance led by Russia and Saudi Arabia.

The39,000 b/d rise in Nigerian production and the 45,000 b/d  added by Brunei did little to offset the 173,000 b/d decline in Russia and the 76,000 b/d shortfall in the United Arab Emirates (UAE ).

The Oracle Today reports that Nigeria’s actual oil production numbers

Production in June averaged 33.903 million bpd from the OPEC+ countries with a quota while the target was 33.85 million bpd.

Members of the alliance including Oman, Kuwait, the UAE, Algeria, Saudi Arabia, Russia, Iraq and Kazakhstan led voluntary output cuts in June.

African members of the alliance proved unable to meet allocated quotas, a situation that involuntarily places them permanently in the compliance list.

Rystad noted that Sudan, South Sudan, Nigeria, Gabon, Equatorial Guinea, Congo-Brazzaville, Bahrain, Azerbaijan, Brunei and Malaysia continued to over comply with the cuts in the month of June.

According to Rystad, OPEC+ overproduced by 53,000 b/d in June.

OPEC+ had overproduced by 399,000 bpd in April, and by 176,000 b/d in May; raising concerns about the group’s compliance to its set production ceilings.

June production was closer to targeted production levels than in any of the preceding months in 2024, only exceeding them by 53,000 b/d. “The recent improvement in compliance levels with the OPEC+ cuts show strong commitment and cohesion inside the group. It also shows that the compensation mechanism put into place is working,” said Rystad Energy’s senior vice president of oil market research, Jorge León, in the firms July 8, 2024, update. “I expect to see strong compliance continuing in the coming months.”