• Monday, March 04, 2024
businessday logo


Angola produces more oil than Nigeria for third straight month

Nigeria’s oil production woes threaten 2024 budget

For the third straight month, Angola produced more crude oil than Nigeria in July, as Africa’s biggest economy lost 74,000 barrels per day, according to a new report by the Organization of the Petroleum Exporting Countries (OPEC).

BusinessDay reported last month that Angola produced more crude oil than Nigeria in May and June 2022, despite an increase in out by Africa’s largest economy in June.

OPEC’s monthly report for August showed that Nigeria’s oil production declined by 74,000 barrels per day (bpd) to 1.08 million bpd in July from 1.26 million in June, based on direct communication.

Angola’s oil production rose to 1.18 million bpd in July, up from 1.17 million bpd in June, 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.

Nigeria recorded the second greatest decline in production among its OPEC peers in July.

On a monthly average, crude differentials to the North Sea Dated benchmark by Bonny Light, Forcados and Qua Iboe rose by $2.14, $1.96 and $2.68, respectively, m-o-m in July to settle at premiums of $7.42/b, $9.57/b and $9.20/b.

Read also: Oil theft spooks operators, deepens underinvestment

According to secondary sources, total OPEC’s crude oil production averaged 28.90 million bpd in July 2022, higher by 216, 000 bpd.

“Crude oil output increased mainly in Saudi Arabia, the UAE and Kuwait, while production in Venezuela and Angola declined,” the 13-member oil cartel said.

Preliminary data indicates that global liquids production in July increased by 1.7 million bpd to average 100.6 m compared with the previous month.

However, non-OPEC liquids production including OPEC natural gas liquids (NGLs), was estimated to have increased in July by 1.5 million bpd month-on-month to an average 71.7 million bpd, and was higher by 2.4 million bpd year-on-year.

The report said: “The share of OPEC crude oil in total global production decreased by 0.3 percentage points to 28.7 percent in July 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.”

For 2022, world oil demand is foreseen to rise by 3.1 million bpd, a downward revision of 0.3 million bpd from last month’s estimate despite some regional revisions, according to OPEC.

Total oil demand is projected to average 100.03 million bpd. In 1Q22, demand was revised up amid strong economic growth in most consuming countries and a lower baseline,” it said.