Nigeria and Iran’s crude oil production for the month of August boosted the OPEC production level despite the fact that Saudi Arabia, the leader of the group’s production level was down by about 170,000 barrels per day.
Crude oil production from the OPEC alliance actually climbed in August by 40,000 bpd, according to a new survey published by Bloomberg on Friday.
Saudi Arabia’s output may have fallen in August by 170,000 bpd, according to the survey, but Nigeria and Iran’s production increased, largely offsetting Saudi Arabia’s cuts.
Saudi Arabia produced 8.98 million bpd in August, according to the survey, while Iran boosted production to more than 3 million bpd, and Nigeria’s reached 1.34 million bpd—an increase of 80,000 bpd according to Bloomberg’s survey data, which is based on ship-tracking data, information from officials, and estimates from firms like Kpler and Rystad.
The Nigerian National Petroleum Company (NNPC) Limited says Nigeria’s crude oil production level (including condensate) is currently at 1.67 million barrels per day (bpd).
Mele Kyari, group chief executive officer (GCEO) of NNPC, spoke at a press briefing in Abuja on Friday.
In July 2023, the country’s crude oil (and condensate) output fell to 1.29 million barrels per day (bpd), from 1.48 million bpd in the previous month.
Giving updates at the news conference, Kyari said oil production increased by over 300,000 bpd.
“May I also use this opportunity to say that I was just checking the data for Wednesday? The actual data for crude oil and condensate production is at 1.67 million barrels per day.
“This is substantial, if you look at the situation where we were almost going below a million barrels some months ago. This is quite substantial. And the connection of this to subsidy was that you cannot give what you do not have.”
Overall, the OPEC group produced 27.82 million barrels per day in August, the survey said.
Analysts largely expect Saudi Arabia to extend its 1 million bpd supply cut into October, even though crude oil prices rose to 2023 highs on Friday, with WTI reaching $85 per barrel. Saudi Arabia’s extra cut began in July.
Saudi Arabia produced 8.98 million bpd in August, according to the survey, while Iran boosted production to more than 3 million bpd, and Nigeria’s reached 1.34 million bpd—an increase of 80,000 bpd according to Bloomberg’s survey data, which is based on ship-tracking data, information from officials, and estimates from firms like Kpler and Rystad.
Russia said earlier this week that it had reached another deal with OPEC regarding crude oil supply volumes, promising to provide details of the deal next week.
Earlier this week, a Reuters survey had estimated that OPEC’s total production rose in August by 220,000 bpd over July figures—the first rise since February. According to that survey, OPEC’s production reached 27.56 million bpd in August. Production for the 10 members that are part of the supply cut agreements fell by 10,000 bpd in August, the Reuters survey said.
The OPEC+ group is set to hold a meeting on October 4, although a full ministerial meeting isn’t scheduled until late in November.