ABUJA: Nigeria’s crude oil supplies to the global market rose by 60,000 barrels per day, bpd in June, this year.
The country’s export could have been higher if not for much loading delays at Bonny terminal and a force majeure on exports of Forcados crude.
The Reuters confirmed the development maintained that, “Nigeria increased output by 60,000 bpd and the increase would have been larger without loading delays at the Bonny terminal and a force majeure on exports of Forcados crude.”
Investigations showed that the nation’s production and export were also drastically reduced because of pipeline vandalism and oil theft during the period.
Shell Petroleum Development Company, SPDC which remains the highest petroleum producer indicated in its report that crude oil theft is till high in the Niger Delta.
“Crude oil theft, sabotage and illegal refining are the main sources of pollution in the Niger Delta today and were the cause of 75per cent of spill incidents from Shell Petroleum Development Company of Nigeria Joint Venture (SPDC JV) pipelines in 2014.”
“An average of 37,000 barrels of oil equivalent a day (boe/d) were stolen from the SPDC JV network in 2014, with an additional 110,000 boe/d of production deferred due to illegal interference with pipelines and other illegal activities such as theft of well head equipment,” it added.
However, Reuters report indicated that the countries with lower output, Libya posted a slight decline as supply remained disrupted by unrest and negotiations to reopen closed oilfields had yet to succeed. Angola exported fewer cargoes following a strong month in May.
Generally, the report maintained that the oil output of Organisation of Petroleum Exporting Countries, OPEC, climbed to 31.60 million barrels per day, bpd, in June, showing a three-year high due to increased supplies from Iraq and Saudi Arabia.
According to the report, the boost from the OPEC puts output further above its target of 30 million barrels per day (bpd) and comes despite outages in Libya and Nigeria that curbed supplies.
The report indicated that OPEC supply has risen in June to 31.60 million bpd from a revised 31.30 million bpd in May, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants.
It maintained that the group has raised output by more than 1.3 million bpd since it decided in November 2014 to defend market share rather than prices.
The report indicated that a final deal between world powers and Iran over Tehran’s nuclear work could add to supplies.
“If sanctions were to be eased, additional oil from Iran would flood onto the already oversupplied oil market,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
