Business News

Inflation Menace Targets Transportation Fares

By Adedapo Adesanya

For another month, Nigeria failed to meet its crude oil output quota in June 2022, recording a decline of 80,000 barrels per day.

The country, which prides itself as Africa’s largest oil producer, finished the month as the second-highest laggard among producers that make up the Organisation of the Petroleum Exporting Countries (OPEC).

According to a Reuters survey, secondary data from sources said Nigeria followed Libya as the producer with the second-largest decline, adding that outages and maintenance curbed output.

The decline from both African countries offset supply increases by Saudi Arabia and other large producers including the United Arab Emirates.

OPEC in June pumped 28.52 million barrels per day, the survey found, down 100,000 barrels per day from May’s revised total.

The cartel had planned to boost June output by about 275,000 barrels per day.

Iraq’s supply also fell, with sources in the survey citing lower exports.

Saudi Arabia, the United Arab Emirates and Kuwait added a combined 130,000 barrels per day. Saudi Arabian output was over 100,000 barrels per day below its quota, according to the survey.

Production in Iran and Venezuela, the other two exempt producers (alongside Libya), also edged higher.

OPEC plus Russia and other allies, known as OPEC+, are unwinding 2020 output cuts made due to the pandemic, although many are struggling to do so with the alliance at a meeting yesterday sticking to its planned output hike for August.

The deal called for a 432,000 barrels per day increase in June from all OPEC+ members, of which about 275,000 barrels per day is shared by the 10 OPEC producers the agreement covers. Supply from the 10 rose by just 20,000 barrels per day, the survey found.

OPEC compliance with pledged cuts was 253 per cent in June, the survey found, up from 178 per cent in May.

The Reuters survey aims to track supply to the market. It is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from tanker trackers such as Petro-Logistics, as well as information provided by sources at oil companies, OPEC and consultants.

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