Nigeria’s crude oil production saw an increase in production levels in May after several months of lag, increasing by 70,000 barrels per day and averaging 1.42 million bpd in May.

This was revealed in Reuters’ crude oil production survey released on Tuesday based on flow data from Refinitiv Eikon, information from tanker trackers such as Petro-Logistics and information from industry sources. oil companies, OPEC and consultants.

Nairametrics reported earlier that according to the Reuters survey, Nigerian production recorded a drop of 40,000 bop in April 2022 due to a force majeure event still in place on the Bonny Light export stream.

What the report says

Rising above Nigeria’s average production of 1.35 mbd, the survey indicated that the Organization of the Petroleum Exporting Countries (OPEC) May production exceeded the increase forecast under a deal with allies for the first time since February, citing a higher Saudi and Iraqi offer combined with a partial resumption in blackout-hit Nigeria.

• “The 10 OPEC members bound by the deal pumped 24.73 bpd in May, up 280,000 bpd from April and above the 274,000 bpd increase predicted by the deal.
• “The biggest increase in May of 100,000 bpd came from Saudi Arabia.
• “The second-largest 70,000 bpd came from Nigeria, whose loading schedules point to increased exports in May, although the main flow of Bonny Light crude remains under force majeure.”
• The report adds that the biggest decline was in Libya, where supply fell by 70,000 bpd as unrest continued to dampen production in the country.
• “Production in Iran also fell. Exports have fallen in part, survey sources say, as Iran has shipped less oil to China since the start of the war in Ukraine, with Beijing favoring cheaper Russian crude.

What you should know

• OPEC announced last month that it had increased Nigeria’s oil production quota from the target of 1.735 million barrels per day (mbpd) approved in May 2022 to a new target of 1.772 mbd for June 2022.
• This comes amid Nigeria struggling to meet its OPEC-approved crude oil quota with an assumed average oil production of 1.24 mbpd in March amid reports of rising oil prices. crude oil theft.
• According to the Reuters survey, Nigerian production recorded a decline of 40,000 bop in April 2022 as force majeure remained in place on the Bonny Light export flow.
• He noted that despite Nigeria’s lower production, OPEC pumped 28.58 mbd in April, up 40,000 bpd from the previous month and below the increase of 254,000 bpd. provided for under the supply agreement.

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