Quoting a Reuters survey of Organisation of Petroleum Exporting Countries (OPEC) crude oil production for the month of April, 2020, OPEC has said Nigeria crude oil output declined by 40,000 barrels per day (bpd) in the period under review.
The survey noted that the increase in OPEC’s oil output in April undershot the rise planned under a deal with allies, as declines in Libya and Nigeria offset supply increases by Saudi Arabia and other top producers.
According to the survey: “OPEC pumped 28.58 million barrels per day (bpd) in April, up 40,000 bpd from the previous month and short of the 254,000 bpd increase called for under the supply deal.
“OPEC and its allies, known as OPEC+, are slowly relaxing 2020 output cuts as demand recovers from the pandemic. OPEC+ meets on Thursday and is expected to confirm a previously agreed output hike despite the surge in oil prices after Russia’s invasion of Ukraine.”
“Probably the view is to maintain the plan,” an OPEC delegate said of Thursday’s meeting. The deal called for a 400,000 bpd increase in April from all OPEC+ members, of which about 254,000 bpd is shared by the 10 OPEC producers the agreement covers.
Output undershot the pledged hikes from October to March, with the exception of February, according to Reuters surveys, as many producers lack the capacity to pump more crude following insufficient investment, a trend accelerated by the pandemic.
As a result, the 10 OPEC members are pumping far less than called for under the deal. OPEC compliance with pledged cuts was 164%, the survey found, as against 151% in March. Output drops most in Libya and Nigeria.
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