The Organization of petroleum exporting countries, OPEC, and its amalgamates (OPEC+) have increased Nigeria’s crude oil output quota to 1.830 million barrels per day, mb/d, which is dated to take effect in September 2022 as the price of OPEC basket of thirteen crudes stood at $104.86 a barrel on Tuesday, compared with $106.80 the previous day, according to OPEC Secretariat calculations.
It was reported that the decision was taken at the 31st OPEC and non-OPEC ministerial meeting held via video conference yesterday, and it was targeted at achieving stability in the global market as quotas for several other oil-producing countries were also reviewed upwards
The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basrah Medium (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
A closer look at the September 2022 required production showed that amongst African producers, Nigeria’s 1.830 mb/d was the highest while Sudan’s 75,000 bp/d was the lowest.
Meanwhile, the price of Bonny light returned to $100 per barrel, after a brief drop below the mark, but it is doubtful if Nigeria currently producing about 1.4mb/d, including condensate would meet the new quota after falling to meet the lower quota for several months in a row.
However, it was also gathered that OPEC stated that “the meeting noted the dynamics and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions”.
