Nigeria’s Oil Production Rises as OPEC Struggles to Meet Targets.
The oil production of the Organisation of Petroleum Exporting Countries (OPEC) decreased in August, reaching its lowest level since January, according to a Reuters survey. The unrest in Libya, which disrupted supply, compounded the effects of ongoing voluntary cuts by other OPEC members and the broader OPEC+ alliance.
The survey revealed that OPEC’s output was 26.36 million barrels per day (bpd) last month, marking a decline of 340,000 bpd from July. This figure represents the lowest production total since January 2024.
A significant drop in Libyan exports and production, resulting from a political standoff over control of the central bank, contributed to rising oil prices. Sources indicated that this situation has increased the likelihood that OPEC+ will move forward with a planned output increase in October.
Libya experienced the most substantial supply loss, amounting to 290,000 bpd last month. Output disruptions occurred at the Sharara field early in August and at several other fields later in the month, reducing the average output to around 900,000 bpd.
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In addition to Libya, other countries also reported declines. Iraq, for instance, reduced its exports in August and is actively working to improve compliance with its OPEC production targets.
Meanwhile, Iran has been increasing its oil exports over the past few years. Nigeria is also among the nations that have seen a rise in production, with a slight increase in exports contributing to its overall output.
The survey highlighted that OPEC produced approximately 220,000 bpd more than the implied target set for the nine members involved in supply cut agreements. Iraq accounted for a significant portion of this excess production.
Overall, the dynamics within OPEC and its member states continue to evolve, influenced by geopolitical factors, compliance with agreements, and market conditions.
