The Organisation of Petroleum Exporting Countries (OPEC) has disclosed that Nigeria’s crude oil production declined from the 1.923 million barrels per day (bpd) it recorded in April to 1.902 million bpd in May.
According to OPEC in its monthly report released on Tuesday, the total crude oil production from member countries averaged 30.57 mbpd in May, representing an increase of 106 thousand barrels per day (tdpd) over the previous month.
It noted however that the increase came mainly from Saudi Arabia, Angola, and the UAE, while crude production from Iran, Libya, Iraq, and Nigeria declined. “OPEC crude oil production, not including Iraq, stood at 27.45 mbpd in May, up 128 tbpd from the previous month”, it added.
Africa’s oil supply is forecast to average 2.38 mbpd in 2013, an increase of 70 tbpd from 2012, flat from the previous month.
The report stated that despite the steady state, there were few upward and downward revisions that offset each other compared to last month. “Congo’s oil production forecast experienced a downward revision on the back of changes to the expected output in the second half. Oil supply from Congo is expected to average 0.28 mbpd in 2013, a decline of 20 tbpd from previous year.
“Equatorial Guinea’s oil supply encountered an upward revision of 10 tbpd on the back adjustment to actual production figures in the first quarter that was carried over to the rest of the Year. Output from Equatorial Guinea is seen to average 0.31 mbpd in 2013, steady from the previous year. South Sudan’s and Sudan’s oil production is expected to increase by 80 tbpd in 2013 and average 0.19 mbpd, steady from previous assessment”.
The report believed that demand would expand by 900,000 barrels per day (bpd) in the second half, up from 700,000 bpd in the first six months of 2013.
“The second half of the year is expected to see higher demand. In terms of demand growth, the expected global economic recovery in the second half of this year could also add more barrels to seasonally higher global consumption.
“Overall, existing fundamentals portray a market with ample supply, which is further reflected in comfortable crude oil stock levels,” the report said.
The 6.8 per cent fall in the price of the OPEC Reference Basket in the first quarter of 2013 compared to the same quarter in 2012 is expected to have a less-proportional impact on OPEC countries’ overall growth rate due to the comfortable cushion of reserves maintained by some OPEC members.
It added that growth this year is foreseen to be at 4.2 per cent, which may seem far below last year’s 5.3 per cent. “However, after removing the distortion caused by Libya’s strong comeback, which also inflated the figures for 2012, growth in 2013 is likely to in line with that experienced in the previous year.”
Information from the Citizen was used in this report.