Nigeria’s crude oil production increased in May and June, according to data published by the Organisation of the Petroleum Exporting Countries (OPEC).
The country’s output increased by 42,000 barrels per day to 1,530 million barrels in May, from 1,489 million barrels in April.
According to Reuters, Nigeria, whose shipments were not affected by the Iran war, also pumped more in June, based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and data provided by sources at oil companies, OPEC, and consultants.
Output from the OPEC rose by 2.34 million barrels a day to 18.75 million a day, with the gains driven by Kuwait, Saudi Arabia and Iran, the survey showed. The rebound still leaves production considerably below prewar levels.
Kuwait posted the biggest increase among OPEC’s 11 members last month, boosting output by 870,000 barrels a day to 1.36 million a day followed by Saudi Arabia, which raised output by 550,000 barrels a day to an average of 7.2 million a day. That was followed by Iran, which hiked by 510,000 a day to pump 2.85 million a day, and has accumulated a hoard of supply on tankers at sea as it struggles to find buyers.
In the wider alliance, Russia has bolstered crude exports to record levels following Ukrainian strikes on its refineries, potentially diverting volumes that can’t be processed at home.
Even before the peace deal, Persian Gulf producers had found ways to sneak cargoes out through the strait, which was largely shuttered in the early stages of the conflict.
The uptick in supply is creating a surplus in parts of the market, erasing crude’s wartime rally and raising the question of whether OPEC nations will need to compete for customers.
The group’s June production was still 7.3 million barrels a day, or 28 per cent, below February levels, when adjusted for exit by the United Arab Emirates (UAE).
The UAE quit OPEC in May, giving it the freedom to pump at will once the strait fully stabilises. Iraq also briefly threatened it could exit unless eventually given a higher output quota by the organisation.
On Sunday, a subgroup of seven OPEC+ nations announced a 188,000 barrels a day boost in August continuing the series of small and symbolic production hikes during the war to continue a process of restoring output halted a few years ago.
