Saudi Arabia, Iran take over Nigeria’s missing OPEC quota

Saudi Arabia, and Iran have taken over supply of Nigeria’s missing oil barrels in OPEC.
According to survey carried out by Business Times on Thursday, OPEC’s oil output in August is likely to reach its highest in recent history, as extra barrels from Saudi Arabia, Iran and other Gulf members make up for losses in Nigeria.
Production in Saudi Arabia has reached a record high, as a result of seasonally higher domestic demand and doggedness to maintaining market share.
Other big Middle Eastern producers, also increased production.
Supply from the Organization of the Petroleum Exporting Countries, OPEC has risen to 33.50 million barrels per day (bpd) from a revised 33.46 million bpd in July, according to shipping data.
The gain from Saudi Arabia and Iran especially, casts doubt over the success of OPEC’s talk on freezing output to boost prices.
“OPEC does not really want to freeze production,” said Olivier Jakob, oil analyst at Petromatrix. “But it dreams of freezing prices at current levels.”
Supply has risen since OPEC in 2014 dropped its historic role of fixing output to prop up prices as Saudi Arabia, Iraq and Iran pumped more. Production has also climbed due to the return of Indonesia in 2015 and Gabon in July as members.
August’s supply from OPEC excluding Gabon and Indonesia, at 32.54 million bpd, is the highest starting from 1997, according to report by Reuters.
In August, Saudi Arabia is expected at least to match July’s record of 10.67 million bpd, sources in the survey said.
Other industry sources said a new record as high as 10.90 million bpd was possible in August.
There is no sign of any deliberate cutbacks. Saudi Energy Minister Khalid al-Falih told Reuters last week that August production had remained around July’s level, without giving a precise figure.
The United Arab Emirates continues to expand output, hitting 3.0 million bpd in August for the first time. Iraq and Kuwait also pumped slightly more than in July.
Supply in Iran, OPEC’s fastest source of production growth earlier this year after the lifting of Western sanctions, has held steady this month as output nears the pre-sanctions rate. Iran is seeking investment to boost supply further.
Of countries with lower output, the biggest drop came from Nigeria as militants attacked oil pipelines.
The Qua Iboe stream, which is the country’s largest, has been under force majeure for more than a month, reducing exports.
The new data from National Bureau of Statistics, NBS, stated that oil production is at 1.69 million barrels per day, down by 0.42 million barrels per day from the first quarter, and 2.2 million barrels per day historical production.