Three months after losing its status as Africa’s biggest crude oil producer to Angola, Nigeria saw its oil output drop below that of Libya last month, according to the Organization of Petroleum Exporting Countries (OPEC).
OPEC’s latest monthly oil market report showed that Angola produced the most oil on the continent in August at 1.18 million barrels per day (bpd), followed by Libya with 1.12 million bpd and Nigeria with 1.1 million bpd, according to secondary sources.
Libya has not submitted its oil production data to OPEC, according to the report.
The OPEC report for September disclosed that Angola produced more crude oil than Nigeria for the fourth straight month, based on direct communication.
Africa’s largest economy saw its oil production fall by 112,000 bpd to 972,000bpd in August from 1.08 million bpd in July, based on direct communication.
Last month, the 13-member oil cartel, in its monthly oil market report, revealed that Nigeria’s oil production declined by 74,000bpd in July from 1.26 million bpd in June, based on direct communication.
On the other hand, Angola’s oil production declined by 1000 bpd in August, from 1.18 million bpd in July, based on direct communication.
OPEC uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries.
The Nigerian Upstream Petroleum Regulatory Commission, in its oil production status report for August 2022, revealed that Nigeria’s production declined to 972,394 bpd, down 30.22 percent compared to January’s output.
This decline in production, analysts say, is due to oil theft, vandalism, lack of investment and production shut-ins.
In addition, Nigeria recorded the greatest decline in production among its OPEC peers in August.
On a monthly average, the North Sea Dated-ICE Brent spread fell by a hefty $5.63 in August, which settled at a premium of $1.88/b, compared to a premium of $7.51/b in July.
According to secondary sources, the total OPEC-13 crude oil production averaged 29.65 million bpd in August 202, higher by 618,000 bpd month-on-month.
In addition, crude oil output increased mainly in Libya and Saudi Arabia, while production in Nigeria declined, the 13-member oil cartel said in the report.
Preliminary data indicates that global liquids production in August increased by 1.3 million bpd to average 101.3 million bpd compared with the previous month.
However, non-OPEC liquids production (including OPEC NGLs) is estimated to have increased in August by 0.7 million bpd month-on-month to average 71.6 million bpd, and was higher by 2.8 million bpd year-on-year.
The report said: The share of OPEC crude oil in total global production increased by 0.2 pp to 29.3 percent in August compared with the previous month.
“Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and non-conventional oil, while estimates for OPEC crude production are based on secondary sources.”
Furthermore, for 2022, world oil demand growth remained unchanged from the previous month’s assessment at a healthy level of 3.1 million bpd.
“This includes the recently observed trend for additional oil demand growth due to fuel switching in power generation,” the report said.
The 13-member cartel also noted that total oil demand is projected to average 100.0 million bpd in 2022.