Nigeria's oil production rises to 1.27mbpd, OPEC output falls

The Organisation of Petroleum Exporting Countries (OPEC), has said Nigeria’s average daily crude oil production inched higher to 1.27 million barrels per day (bpd) in June. The surge come at the time the oil group’s daily output fell by 0.3%.

In its monthly oil market report released, the oil group revealed that production data was based on direct communication with Nigerian authorities.

OPEC receives data on crude oil production from two sources: direct communication — which is from member countries — and secondary communication, such as energy intelligence platforms.

According to the intergovernmental body, the current output figure represents a 1.57 per cent rise from the 1.25 million bpd recorded in May.

Due to the current production figure, OPEC said Nigeria retained its position as the biggest oil producer in Africa, surpassing Angola, which produced 906,000 bpd in June.

With 259,000 bpd in June, Congo ranked third among the biggest oil producers in Africa, according to OPEC. “According to secondary sources, total OPEC-12 crude oil production averaged 26.57 mbpd in June 2024, 80 tb/d lower, month-on-month.

OPEC crude oil production decreased by 0.3%, or by 80,000 barrels per day (bpd), in June to average 26.57 million bpd, according to its monthly oil market report released on Wednesday.

Crude oil output fell mainly in Saudi Arabia, while production experienced the biggest increase in Libya and Venezuela. Production in Saudi Arabia, the group’s largest producer, declined by 76,000 bpd, whereas output rose by 24,000 bpd in Libya and by 21,000 bpd in Venezuela.

Total daily crude oil production of the OPEC+ group, which consists of OPEC and some non-OPEC producing countries, fell by 125,000 barrels to 40.80 million bpd.

The global oil demand growth forecast for 2024 remained broadly unchanged from last month’s assessment at 2.25 million bpd year on year, OPEC said.

Total world oil demand is anticipated to reach 104.5 million bpd in 2024, bolstered by strong demand for air travel and healthy road mobility, including trucking, the organization said.

It is estimated that oil demand in OECD countries will increase by 190,000 bpd this year to 45.84 million barrels. In non-OECD countries, demand is expected to increase by 2.06 million bpd this year to 58.62 million barrels.

Petrochemical capacity additions in non-OECD countries, mostly in China and the Middle East, are also predicted to contribute to this rise. On the other hand, global demand is expected to reach 106.31 million barrels in 2025 with an increase of 1.85 million bpd.

In this period, demand is expected to increase by 110,000 bpd in OECD countries and by 1.74 million barrels in non-OECD countries.

Elsewhere, oil prices edged higher on Thursday as crude stocks fell after U.S. refineries ramped up processing and as gasoline inventories eased, signaling stronger demand. Brent futures rose 35 cents, or 0.4%, to $85.43 a barrel.

U.S. benchmark West Texas Intermediate (WTI) crude rose by 0.5% to $82.47 a barrel.

U.S. crude inventories fell by 3.4 million barrels to 445.1 million barrels in the week ended July 5, far exceeding analysts’ expectations in a Reuters poll for a 1.3 million-barrel draw.

OPEC also stick to its forecast for relatively strong growth in global oil demand in 2024 and next year, saying on Wednesday that resilient economic growth and air travel would support fuel use in the summer months.

Gains were, however, capped as supply disruptions at refineries and offshore production facilities from Hurricane Beryl were minimal.