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OPEC+ members fail to meet production target amid rising oil price

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A new survey by S&P Platts has shown Organization of the Petroleum Exporting Countries (OPEC+) members failed to meet May oil production targets, with Nigeria being one of the countries that fell short.

Other nations mentioned were Angola, Equatorial Guinea, and Congo. Amid the shortfall, OPEC+ agreed to raise production output by 648,000 barrel per day (bpd) next month and August, in contrast to the initial 432,000 bpd agreed.

The fall in May’s production quotas across board followed OPEC’s inability to pump about 2.7 million barrels daily in April, according to Oilprice. However, Russia was able to up its output last month, although, their levels is expected to drop in the coming months.

This is due to the embargo placed on the country’s oil export in the European market. The EU members had voted unanimously to bar Russia from selling, as sanction for invading Ukraine. The restriction is expected to affect Vladimir Putin’s revenue from the oil market.

Read also:OPEC raises Nigeria’s production quota for July to 1.799mbpd

Although, Nigeria and other OPEC+ members have moved to fill the gap in case Russia cut output, with the African nation now expected to pump 1.8 million barrels daily, up from its 1.5 million bpd quota, which it struggled to meet, and could only produce 1.3 million, as oil thieves snatch the rest.

OPEC+ failure shows Nigeria is not the only country struggling to achieve production level amid rising demand for oil, as aviation industry, manufacturers, and other oil dependent sectors reopen fully. This has knocked oil price high to $122 per barrel, as of Friday.

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