Nigeria has not fully complied with the production cut deal by the Organisation of Petroleum Exporting Countries and its allies, according to Reuters.
It reported on Wednesday that less than full compliance by producers including Nigeria could hurt the OPEC+ group’s efforts to cut output by 9.7 million barrels per day from May 1.
Nigeria and Angola’s export schedules show they are currently not cutting as much as required under the OPEC+ deal but will go further than they did under the previous OPEC+ agreement that ended on March 31, according to the report.
Under the latest deal, Nigeria should cap production at 1.41 million BPD in May and June. But data from a price reporting agency, Argus Media, show it plans to export 1.56 million BPD in May and 1.65 million BPD in June, excluding the Akpo condensate stream.
A trade source who has seen Nigeria’s latest loading programmes was quoted as saying that while Nigeria had made a significant cut to its export plans in May, it would still fall short of the pledged OPEC+ cut.
“We are now focused on the full and timely implementation of this historic agreement,” Reuters quoted OPEC’s Secretary-General, Mohammad Barkindo, as saying.
The challenge for many OPEC+ countries arises from how much they are asking international oil companies to cut, said Amrita Sen of Energy Aspects.
“Beyond logistical shut-ins, some of the cuts needed from Iraq, Nigeria and others when they have barely complied with previous cuts are simply not going to happen,” she said.
The international oil price benchmark, Brent crude, fell by $1.83 to $29.14 per barrel as of 7:50 PM Nigerian time on Wednesday.