Nigeria’s positive oil output helps OPEC to 3 year high

Organisation of Petroluem Exporting Countries’s (OPEC’s) oil output is expected to rise in August to its highest in almost three years due to an increase in Nigerian exports and smaller rises from Saudi Arabia and other Gulf producers, a Reuters survey found on Tuesday.


Supply from all 12 members of the Organization of the Petroleum Exporting Countries (OPEC) is expected to average 30.15 million barrels per day (bpd) this month, up from 30.07 million bpd in July, the survey of sources at oil companies, OPEC officials and analysts found.

The survey indicates no sign of Saudi Arabia and other Gulf countries cutting back on the supplies they provided to offset the loss of Libya’s exports. Consumers, paying over $100 a barrel for Brent crude LCOc1, will welcome any extra output.

“The market appears well supplied now,” said Christophe Barret, global oil analyst at Credit Agricole. “It seems that Saudi Arabia is continuing to produce a lot.”

August’s total is expected to be OPEC’s highest since October 2008, shortly before OPEC agreed to a series of supply curbs to combat recession, based on Reuters surveys. July’s total was also the highest since October 2008.

OPEC’s Gulf members boosted supplies unilaterally after African countries, Iran and Venezuela blocked a Saudi-led proposal to increase output targets at OPEC’s last meeting, which was held on June 8.

The group still has a way to go to close the gap completely between its production and forecast demand. OPEC expects demand for its oil to average 30.88 million bpd in the second half of 2011.

The biggest change this month is in Nigeria, where supply has risen sharply.

Loading programmes showed Africa’s top exporter would export about 2.25 million bpd, its highest since January 2006, most of which has been shipped.

An August 23 de