Nigeria oil export drops, as OPEC output increases to 25.52 mpd
By Uthman Salami
Nigeria oil exports in May 2021 reported to have a huge drop compared to other members of the Organisation of Petroleum Exporting Countries (OPEC).
This drop was said to have been instigated by issues around some export terminals such limiting capacity of Nigeria to meet its allocated volume.
According to a survey by Reuters, an international news agency, OPEC oil output surged in May as the group agreed to lift supply curbs under a pact with allies, though a drop in Iranian exports and involuntary reductions in African members induced the increase.
The survey revealed that OPEC members has pumped 25.52 million barrels per day (bpd) in May, as it rev to 280,000 bpd from April. Output has risen every month since June 2020 with the exception of February.
Recall that OPEC+ members had resolved to ease supply cut, a decision made in May 1 in 2020, yet another meeting of OPEC delegates is expected where producers are hopefully going to stick to the existing plan.
OPEC compliance with pledged cuts was 122 per cent in May compared to 123% in April.
The OPEC+ agreement allows for a 277,000 bpd increase in OPEC output in May versus April, plus Saudi Arabia had pledged to add 250,000 bpd as part of a plan to gradually unwind a 1 million bpd voluntary cut had made in February, March and April.
According to the survey, with reductions in other countries offsetting the Saudi move, the increase in May OPEC output is less than expected, and the group is still pumping much less than called for under the deal.
The biggest increase in May of 340,000 bpd came from Saudi Arabia as it began to unwind the voluntary cut and raised output as part of the May 1 OPEC+ boost.
Iraq, a country sitting in Second position of oil producing state after Saudi Arabia, also pumped more in May, by adding an extra 70,000 bpd and pushing output beyond its quota.
Libya, one of the country that was exempted from making any cut, boosted output in May after a force majeure on oil loadings from the port of Hariga was lifted.
The biggest drop was in Nigeria, where exports slowed from a number of terminals. Angolan supply, in long-term decline, also declined.
Iran, which has managed to raise exports since the fourth quarter despite U.S. sanctions, exported less in May due to lower demand in China.
The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from tanker trackers such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.
