OPEC March Target: Nigeria’s 100,000 barrels output drops in March

Nigeria in March recorded a sharp drop in oil output which was put at 100,000 barrels a day. This was partly attributed to force majeure declared on the Bonny and Brass River streams.

Also, in March the Organisation of Petroleum Exporting Countries, OPEC’s increased oil output fell short of its target under a deal with allies as outages in Nigeria and Libya partly offset increases by Saudi Arabia and other top producers.

The OPEC pumped 28.54 million barrels per day (bpd) in March up 90,000 bpd from February but short of the 253,000 bpd increase called for under its deal with allies including Russia.

OPEC and its allies, known as OPEC+, are gradually relaxing 2020 output cuts as demand recovers from the pandemic. OPEC+ met on Thursday and confirmed previously agreed plans, despite the surge in oil prices to a 2008 high above $139 a barrel following Russia’s invasion of Ukraine.

The deal calls for a 400,000 bpd increase in March from all OPEC+ members, of which about 253,000 bpd is shared by the 10 OPEC producers the agreement covers.

Output undershot the pledged increases from October to January, but exceeded it in February as many producers lack the capacity to pump more crude due to insufficient investment, a trend accelerated by the pandemic.

As a result, the 10 OPEC members are pumping far less than called for under the deal. OPEC compliance with pledged cuts was 151 per cent the survey found, versus 136per cent in February.

Libyan output also declined by 50,000 bpd due to shutdowns at two oilfields early in the month.

The Nigeria and Libya outages limited the increase in OPEC’s output by top producers. The biggest rise in March of 110,000 bpd came from Saudi Arabia, the survey found.

Kuwait and Iraq each provided smaller increases of 30,000 bpd while the United Arab Emirates added 10,000 bpd.

Iran, exempt from making output cuts, has been shipping more to China in recent months although there was no significant change in its output in March, the survey found, as talks on reviving its 2015 nuclear deal with world powers continue.

Production in Venezuela, another exempt producer, continued to edge higher.

Production did not increase in Equatorial Guinea or Gabon, the survey found, owing to a lack of capacity to produce more.