Nigeria Increases Oil Production by 70,000 BPD Above OPEC Target
A Reuters survey has revealed that Nigeria is producing 70,000 barrels per day (bpd) more than its OPEC+ quota, contributing to an overall increase in OPEC’s oil output for February.
OPEC Oil Output Sees Growth
According to the survey, OPEC’s total oil production rose to 26.74 million bpd in February, reflecting an increase of 170,000 bpd from January. The largest production increases came from Iran and Nigeria.
Despite ongoing efforts by the United States to curb Iran’s oil exports, Iran recorded the highest rise in output, increasing by 80,000 bpd to reach 3.30 million bpd, matching its highest production level since 2018.
Nigeria’s Oil Production Gains
Nigeria posted the second-largest production increase, driven by higher export volumes and increased domestic consumption at the Dangote refinery. This resulted in Nigeria pumping 70,000 bpd above its OPEC+ target.
OPEC+ Strategy and Production Cuts
OPEC+, which includes OPEC members, Russia, and other allies, has maintained production cuts due to weaker demand forecasts and rising supply from non-OPEC nations. However, the group has agreed to gradually increase production starting in April.
Other Key Producers and Market Trends
- Saudi Arabia and Iraq, OPEC’s two largest producers, saw marginal changes in their output.
- The UAE’s production slightly exceeded its OPEC+ target.
- The survey found that no major declines in oil production occurred in February.
While OPEC’s data aligns with its secondary sources, other estimates, such as those from the International Energy Agency (IEA), suggest some OPEC+ members may be producing more than reported.