- Nigerian Crude Oil Supply Weighs on Market
Plentiful supplies of Nigerian crude weighed on the market on Wednesday, while Angola’s state oil company sold a Dalia cargo, reducing the number of unsold barrels ahead of the release of May loading programmes.
About 35 cargoes were available for April, traders said, down from Tuesday’s estimate but still a sizeable overhang given that the May loading programmes are due out as soon as Friday.
Qua Iboe was being offered at around dated Brent plus $2.00 a barrel, steady from an offer level reported on Friday, according to Reuters
Agbami was offered at dated Brent plus 50 cents, down from dated plus 75 cents reported on Tuesday.
Akpo was offered at dated Brent plus 70 cents, steady from Tuesday. About six cargoes of April-loading crude are unsold, a trader said.
Meanwhile, the total crude oil production from the Organisation of Petroleum Exporting Countries fell to 32.19 million barrels per day, down 80,000 bpd from January.
Nigeria saw the largest rise in the month, boosting production just over 20,000 bpd to 1.81 million bpd, while Libya increased output by 10,000 bpd to one million bpd. The two countries have a combined 2.8 million bpd cap under the deal, after having spent 2017 exempted from the cuts as they recovered from civil unrest.
Venezuela, whose production has been in free fall, once again had the largest month-on-month drop in production in February of 50,000 bpd to average 1.55 million bpd, secondary sources estimated.
The crisis-wracked country self-reported to OPEC a February output figure of 1.59 million bpd, down 180,000 bpd from December. Venezuela’s quota under the deal is 1.97 million bpd.
The UAE had the second largest fall of 30,000 bpd from January to average 2.83 million bpd in February, secondary sources estimated. This is largely due to field maintenance, industry officials previously told S&P Global Platts. The UAE’s quota under the deal is 2.87 million bpd.
Iraq, OPEC’s second largest producer, had a fall of just below 30,000 bpd to 4.43 million bpd in February. The country, which has a quota of 4.35 million bpd, self-reported February output of 4.36 million bpd, the sixth month in a row in which it has reported that figure.
