In a notable shift within the oil industry, Nigeria increased its oil output by 50,000 barrels per day (bpd) in June, according to a recent Reuters survey. This rise contributed to a broader increase in OPEC’s overall production, marking the second consecutive month of growth for the organization.
The Organisation of the Petroleum Exporting Countries (OPEC) reported an overall output of 26.70 million bpd in June, up by 70,000 bpd from May. This increase came despite the ongoing voluntary supply cuts implemented by OPEC+ members, including influential producers like Saudi Arabia and Russia, which aim to stabilize the market amidst fluctuating demand, high interest rates, and rising US production.
Nigeria’s production boost was significant, complemented by smaller increases from Iran and Algeria following the completion of oilfield maintenance. However, Iraq experienced the largest decline, dropping 50,000 bpd, although it continues to exceed its OPEC+ production targets.
The survey, which tracks supply based on shipping data, LSEG flows, and insights from oil companies, OPEC, and industry consultants, highlights that OPEC pumped about 280,000 bpd more than the implied target for the nine members adhering to supply cut agreements. Iraq remains the primary contributor to this excess.
These developments reflect OPEC+’s strategy to balance global oil markets, which has shown some success. Brent crude futures are currently trading near $87 a barrel, close to a two-month high, signaling a recovery that, while challenging for consumers, could strengthen revenue for OPEC+ nations dependent on petroleum sales for government funding.
