A Reuters survey showed today, Tuesday, that OPEC oil production rose in February, supported by the recovery of oil supplies in Nigeria, despite the commitment of major oil producers to the broader “OPEC +” alliance agreement to reduce production to support the market.
The survey showed that the Organization of Petroleum Exporting Countries (OPEC) pumped 28.97 million barrels per day this month, an increase of 150 thousand barrels per day over January.
Production is still down by more than 700,000 bpd since September.
Nigeria suffers from theft of crude oil and security problems in its oil-producing region, which affects production.
The survey found that many crude oil flow sources produced more in February, although output from Nigeria, Africa’s largest oil producer, still fell short of the OPEC target.
Output from OPEC+, a grouping of OPEC countries plus other allies, increased for most of 2022 as demand recovered from the pandemic.
But as oil prices slumped in November, the group announced the largest targeted production cut since the start of the “Covid-19” pandemic in 2020.
OPEC + decided to reduce the target production level by two million barrels per day, including about 1.27 million barrels per day from the ten OPEC member countries. Target levels remained unchanged in February.
With oil production recovering in Nigeria this month, the rate of compliance with the agreement reached 169% with regard to the production cuts pledged by countries, according to the survey, compared to 172% in January.
Oil production remains below target levels because many producing countries, particularly Nigeria and Angola, lack the capacity to pump at agreed levels.
The survey found that the 10 member states of OPEC, which are obliged to cut production, pumped less than the target level of the organization by about 880 thousand barrels per day. The deficit in January was 920,000 barrels per day.
Iraq and Nigeria
The survey showed that oil production in Nigeria recorded the largest increase in OPEC by 100 thousand barrels per day in February, bringing the country closer to reaching the goal of increasing its production to 1.6 million barrels per day in this quarter.
Iraq, which is the second largest producer of crude oil in OPEC, came second in terms of increased production after Nigeria.
According to data from Refinitiv “Eikon” and other companies tracking oil movement, Iraq increased the volume of its exports of oil extracted from the south of the country this month, which compensated for the decrease in its exports from the north of the country through the Turkish port of Ceyhan, which was suspended for a short time due to the earthquake that struck Turkey. and Syria.
The survey concluded that Saudi Arabia, Kuwait and the UAE, members of OPEC, showed strong commitment to the production target under the “OPEC +” agreement.
Angola recorded the largest decline in oil production, amounting to 80 thousand barrels per day, due to a relatively limited export program and maintenance operations in the Dalia oil field.
The agreement excludes Venezuela, Libya and Iran from cutting production.
According to the survey, Iran recorded an increase in its exports in February, while Venezuela’s oil production increased slightly. Libya’s oil production remained unchanged.
The Reuters survey aims to track market supply and relies on shipping data provided by external sources, Refinitiv Eikon data, and information from companies that track flows such as Petro-Logistics and Kepler, along with information provided by sources at oil companies and companies. OPEC and advisors.