In the most recent Monthly Oil Market Report (MOMR) released by Dzwatch, Nigeria, Africa’s largest crude producer, experienced a significant increase in production. In August, Nigeria’s daily production rose by 98,000 barrels, marking an eight percent increase compared to July’s production of 1.17 million barrels per day.
Despite this monthly gain, Nigeria has not surpassed its June production level of 1.320 million barrels per day. These findings contrast with the figures reported by Platts survey by S&P Global Commodity Insights, which suggested a growth to 1.38 million barrels per day in August.
For years, Nigeria has grappled with issues such as crude theft and pipeline vandalism, which have had adverse effects on the country’s economy. These challenges have also impacted the contribution of the oil sector to Nigeria’s gross domestic product (GDP), which currently stands at 5.23 percent.
In August, Nigeria, along with Iran, led in production gains among OPEC members, with an average increase of 113,000 barrels per day for OPEC’s August output. Notably, despite U.S. sanctions, Iran managed to raise its oil production to 3 million barrels per day.
Meanwhile, Saudi Arabia’s production declined as expected, decreasing by 88,000 barrels per day to 8.967 million barrels per day. Production reductions were also observed in Algeria, Angola, Congo, and Venezuela.
Angola’s production dropped by 60,000 barrels per day to 1.115 million barrels per day, while Algeria’s decreased by 26,000 barrels per day to 933,000 barrels per day. The most significant percentage decrease was seen in Congo at 6 percent, with production falling from 270,000 barrels per day to 255,000 barrels per day. Conversely, Gabon experienced the largest percentage production increase, rising by 11 percent from 204,000 barrels per day in July to 215,000 barrels per day in August.
