Nigeria, others’ crude oil boost OPEC+ output, tempers Saudi, Russia cut

Crude oil output in Nigeria and Iraq amongst others tempered the cut adopted by Saudi Arabia and Russia in August, a Platts survey conducted by S&P Global Commodity Insights has revealed.

The report which covered August production activities said crude oil output from OPEC+ averaged 40.52 million barrels per day last month, on the back of Iran, Iraq and Nigeria.

Crude production increased by 120,000 barrels per day despite Saudi Arabia and Russia cutting their output by 100,000 barrels and 20,000 barrels per day respectively.

Record showed that the 13 members of OPEC produced 190,000 barrels per day month on month, compared to the 70,000 barrels per day from the non-OPEC countries in the coalition.

Part of the report reads: “OPEC+ production averaged 40.52 million barrels per day in the month, with the 13 members of OPEC producing 190,000 barrels per day month on month. Output from the non-OPEC countries in the coalition contracted 70,000 barrels per day.

READ ALSO:OPEC+ crude oil production hits two-year low, after cuts by Saudi Arabia

“Even with the net increase, the group’s output remains well below levels earlier this summer, with Saudi Arabia implementing a voluntary 1 million b/d cut since July to help bolster market prices.

“Saudi Arabia’s crude production was 8.95 million b/d in August, down 100,000 b/d month-on-month and at its lowest since May 2021, the survey showed.

“The biggest non-OPEC producer in the group, Russia, lowered production by 20,000 b/d month to 9.4 million b/d in August. Russia in July had pledged a 500,000 b/d supply cut but specified that it pertains to exports, not production. It has since said it will ease back its cut to 300,000 b/d from September.”

While Saudi Arabia and Russia will extend their cuts till the end of the year, other OPEC+ countries like Algeria, Oman, Kazakhstan, the UAE, Kuwait, Gabon and Iraq will join them.

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