Nigeria, Iraq exceed cuts as OPEC achieves 79% compliance

OPEC

Increased production by Nigeria and Iraq above the agreed quota by members of the Organisation of the Petroleum Exporting Countries (OPEC), in February, saw compliance level hitting 79 per cent last month, three per cent above January’s 76 per cent.According to S&P Global Platts survey, Saudi Arabia’s continued output discipline, and Venezuela’s struggles under U.S. sanctions led OPEC’s crude oil production in February modestly lower to 30.80 million barrels daily (b/d).

The figure is a 60,000-b/d drop from January, and is OPEC’s lowest output level since March 2015, when Gabon, Equatorial Guinea, and Congo joined the organisation, while Qatar was still a member.Despite the fall, OPEC still has more cutting to do to fully comply with its supply accord that went into force in January. The 11 members with quotas under the deal achieved 79% of their committed cuts in February, and remained 170,000 b/d above their collective ceiling. This is a slight improvement on January’s 76%, with Nigeria and Iraq producing far in excess of their cap, according to Platts calculations.Venezuela and Iran, both under U.S. sanctions, and Libya, where instability continues to impact output, are exempted from the deal.

According to the data, Nigeria, which was exempted from the previous deal, but agreed to a quota under the current accord, pumped 1.88 million b/d in February, the survey found, 190,000 b/d above its cap.President Muhammadu Buhari had last month said Nigeria could consider a reduction in crude oil production in support of efforts to shore up the price of the commodity.





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