IEA says OPEC market recovery depends on Nigeria, Middle East

The International Energy Association (IEA) has named Nigeria and Middle East as major oil producing countries playing positive role in the market recovery of Organization ofPetroleum Exporting Countries(OPEC).

Price of crude in the international oil market fell from $86 per barrel in 2013 and 2014 to all-time low of below $40 early this year, which saw OPEC introducing measures to improve on the price.

Amidst this, some countries were said to have suffered production hiccup following incidents of insurgency, which posed yet another challenge.

In its July Oil Market Report, the Association stated that there was a noticeable improvement in the pumping rates in the Middle East and recovering of some flows stations in Nigeria.

This though runs contrary to reports from Nigeria, affected by militants’ attacks on its oil facilities, which reportedly reduced its output per day from estimated 2 million barrels per day (mb/d) to less than 1.5 mb/d.

But the report further stated that global oil supplies rose by 0.6 million barrels per day (mb/d) in June, to 96 mb/d.

It says non-OPEC supplies are set to decline by 0.9 mb/d in 2016, to 56.5 mb/d, before rising 0.2 mb/d in 2017.

It was learnt that crude output rose by 400 kb/d in June to an eight-year high of 33.21 mb/d, including newly re-joined Gabon, with Saudi Arabia ramping up to a near-record rate of 10.45 mb/d and Nigerian flows partially recovering from initial setbacks.

Crude oil prices eased from an early June peak of above $52/bl, but traded within a $45-$50 bl subsequently.

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