New Telegraph

OPEC+ Crude Oil Supply Hits 2-Year Low – Report

The crude oil production by the Organization of Petroleum Exporting Countries (OPEC) and its allies have plummeted to a two-year low following the latest oil supply cut by the Kingdom of Saudi Arabia, S&P Global Commodity Insights has said in its latest Platts survey.

According to the survey, crude production from OPEC-13 reached a near-two-year low in July 2023.

The survey seen by New Telegraph on Wednesday stated that there were disruptions in Kazakhstan and Nigeria.

According to the report, these disruptions more than offset gains in Iran and Iraq, contributing to an almost 1 million barrels per day (mbpd) fall in OPEC+ output month on month.

The report said, “OPEC’s 13 members pumped 27.34 mbpd, while Russia and eight other allies added 13.06 mbpd, for a total of 40.40 mbpd, the survey found. That was the group’s lowest since August 2021, when major cuts implemented during the pandemic were still being unwound.

“Saudi Arabia dropped its production to 9.05 mbpd – the lowest level since June 2021. The decline was not as steep as its pledged cut, with production falling 940,000 bpd on June volumes.”

The OPEC+ alliance has adopted a strategy of aggressive supply cuts to support falling oil prices, with several members announcing 1.2 mbpd in collective cuts from May through the end of the year and Saudi Arabia unilaterally declaring an extra 1 mbpd cut for July, which has been extended through September.

Nigeria witnessed a 100,000 bpd drop to 1.32 mbpd on an outage at Forcados from mid-month. This contributed to a sharp drop in exports. Also, Shell Petroleum Development Company suspended loadings of Nigeria’s Forcados crude oil due to a potential leak at the export terminal.

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