Crude Oil

OPEC Bids Member-states to Increase Supply by July, Nigeria Others Benefit

The Organisation of Petroleum Exporting Countries (OPEC) has increased the oil supply by petroleum exporting countries by 0.648 million per day in July, owing to the increase in the global refinery intake. 

On Thursday, OPEC released an official statement after its 29th Ministerial Meeting that it has decided to adjust the monthly production plan of its member states by increasing the overall production beginning next month, July. 

According to the statement made available to Investors King, the global petroleum regulator stated that it has advanced the overall production for July and will be adjusted by an increment of 0.648 million per barrel. 

OPEC further stated that the organisation will extend its compensation period until the end of December 2022, as requested by some underperforming countries. 

It added that peradventure, the underperforming countries submit their plans by 17 June 2022. “Compensation plans should be submitted following the statement of the 15th OPEC and non-OPEC Ministerial Meeting,” it said. 

Nigeria, the largest exporter of crude oil in Africa, benefited from this increase from 1.772mpd for June 2022 to 1.799mpd by July. This upward means that Nigeria’s production and supply of crude oil has moved up by 27 000barrels – a 3.5 percent increase. 

Other African countries that have benefited from the increase are Algeria’s 1,039mpb, and Angola’s 1,502mpb, among other countries. 

The 30th edition of the OPEC and the non-OPEC Ministerial Meeting is scheduled for June 30, 2022. 

Presently, according to the data obtained from the Nigerian National Petroleum Corporation (NNPC), the four refineries (Port-Harcourt Refining Company (2), Kaduna Refining & Petrochemical Company Limited, and the Warri Refining & Petrochemical Company Limited) in Nigeria “have a combined installed capacity of 445,000bpd.”

A comprehensive network of pipelines and depots strategically located throughout Nigeria links these refineries. 

 

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