The Organisation of Petroleum Exporting Countries (OPEC), yesterday revealed that Angola now leads the continent in oil production, despite perceived growth in the Nigerian managers’ index.
This is the third time Angola will overtake Nigeria as the continent’s largest producer, following Niger Delta unrest in April, July 2016. OPEC’s monthly oil market report (MOMR) released yesterday revealed that Angola’s production was now at 1.651 million barrels per day, according to secondary sources.
For direct communications between the country and OPEC, production levels were put at an average of 1.615 million barrels per day. Nigeria, on the other hand, had its production levels at 1.576 million barrels per day and 1.604 million barrels per day, according to secondary sources and direct communications, respectively.
OPEC confirmed its member countries production levels from secondary sources – traders in the industry – and via direct communication with the country’s leadership.
Using both sources, Angola stands as Africa’s largest oil producer, after losing that spot to Nigeria in December 2016. OPEC also revealed that Nigeria, Saudi Arabia and the United Arab Emirates recorded massive improvements in their economic outlook.
“In Nigeria, operating conditions in the country’s private sector improved in January for the first time in a year, as suggested by the Stanbic IBTC Bank Nigeria PMI,” OPEC said.
Also, top OPEC oil producer, Saudi Arabia made a large cut in its crude output in January to support prices and lessen a glut, helping boost compliance with the group’s supply-reduction deal to a record high of more than 90 percent.
The country is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1. Russia and 10 other non-OPEC producers agreed to cut half as much.
Supply from the 11 OPEC members with production targets under the deal fell to 29.888 million bpd last month, according to figures from secondary sources that OPEC uses to monitor its output. OPEC published the data in its monthly report on Monday.
Oil prices pared an earlier decline after the release of the report, trading above $56 a barrel. OPEC’s cut is supporting the market, but expectations that the move will lead to a revival in U.S. shale drilling have limited the rally.