Nigeria and Iran are pumping more oil, increasing OPEC production
Despite continuous restrictions by Saudi Arabia and other members of the larger OPEC+ alliance to support the market, OPEC oil output increased for a second consecutive month in September, according to a Reuters survey released on Monday. Nigeria and Iran had the largest rises in production.
The poll discovered that in October, the Organization of the Petroleum Exporting Countries (OPEC) pumped 27.73 million barrels per day (bpd), an increase of 120,000 bpd from August. In August, production increased for the first time since February.
Nigeria, which is struggling with oil theft and instability in its oil-producing region, was at the forefront of the increase in September. Despite American sanctions, Iran has increased supplies and increased pumping, with output reaching its highest level since 2018.
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According to shipping statistics and sources in the poll, Nigeria was able to increase exports in September without significantly disrupting shipments, raising output by 110,000 bpd. By the next year, the nation hopes to continue its comeback.
According to the poll, production from the 10 OPEC nations who are subject to OPEC+ supply cut agreements increased by 80,000 bpd. Saudi Arabia and the other Gulf states remained very compliant with the agreed-upon reductions and further optional reductions.
According to the study, top exporter Saudi Arabia retained output close to 9 million bpd in August and September while extending a voluntary 1 million bpd output cut to help the market further.
While Angolan supply recorded the highest reduction in the group of 50,000 bpd due to a decline in exports, Iraq and the United Arab Emirates both slightly increased production.
The fundamental reason why OPEC’s output is still 700,000 bpd behind target is that Nigeria and Angola are unable to maintain their agreed-upon levels of production.
The purpose of the Reuters poll is to monitor market supply. It is based on shipping data from outside sources, flows data from Refinitiv Eikon, data from flow-tracking businesses like Petro-Logistics and Kpler, and data from sources at oil corporations, OPEC, and consultants.
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