Nigeria, S. Arabia and others records biggest decline as OPEC output falls
(Ecofin Agency) - Nigeria has recorded the biggest oil production drop amongst the members of the Organization of Petroleum Exporting Countries (OPEC), according to Industry sources.
The West African country in December recorded an output drop of 200,000 barrels to 1.45 million barrels per day. This is even as OPEC’s crude production dropped by 310,000 barrels a day, as unexpected disruptions in the country reduced the group’s supply before planned cuts officially began this month.
According to Amrita Sen (photo), Chief Oil Analyst at London-based consultant Energy Aspects Limited, Nigeria’s output decline was as a result of the maintenance being carried out on the Erha field, as well as industrial actions by workers at ExxonMobil Corporation’s operations in the country which has affected both exports and production.
Loading programmes have revealed that no cargo of the Agbami crude grade was shipped in December, while three of the four Erha cargoes initially scheduled to load were postponed, Vanguard news reports.
Other OPEC members like Saudi Arabia also recorded output decline. The Kingdom’s production dropped by 50,000 barrels a day, while Venezuela’s fell by 40,000.
Iran, Kuwait and Angola on the other hand, reduced output by 20,000 barrels a day while Algeria and Iraq were reported to have decreased by 10,000 bpd. However, Libya last month, produced an additional 50,000 barrels a day as the nation reopened two of its biggest oil fields and loaded the first cargo in two years from its largest export terminal.
Crude oil prices reached $58.37 a barrel on Tuesday, driven by an OPEC agreement to lower supply from January, 2017.