Tags: oil | Africa | Brent | Nigeria

OPEC August Crude Output Rises to One-Year High on Nigeria

Friday, 29 Aug 2014 03:34 PM

OPEC crude oil production increased to a one-year high in August, led by surging output in Nigeria, a Bloomberg survey showed.

Production by the 12-member Organization of Petroleum Exporting Countries rose by 891,000 barrels a day to 31.033 million, according to the survey of oil companies, producers and analysts. Last month’s total was revised 80,000 barrels a day lower to 30.142 million because of changes to the Nigerian and Iranian estimates.

Nigeria, Saudi Arabia and Angola led gains as new deposits came online, security improved and field maintenance programs ended. Iran and Venezuela were the only members to record production declines.

“They are letting it rip,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “The geopolitical scares out there have supported the market some but any resolution would remove that. We’re heading for a definite downtrend in prices if these volumes hold up.”

Brent crude for October settlement rose 73 cents, or 0.7 percent, to close at $103.19 a barrel on the London-based ICE Futures Europe exchange. Brent is the benchmark grade for more than half the world’s oil. West Texas Intermediate oil for October delivery climbed $1.41, or 1.5 percent, to settle at $95.96 a barrel on the New York Mercantile Exchange.

Nigerian Surge

Nigeria’s production climbed 380,000 barrels a day to 2.3 million in August, the most since January 2006. It was the biggest one-month gain in data going back to 1989. Output is often disrupted by unrest in the Niger River delta, the country’s main oil-producing region, leading companies to declare force majeure, a legal step that protects them from liability when they can’t fulfill a contract for reasons beyond their control.

“Nigeria is up a lot and a lot of the force majeures expired,” Amrita Sen, chief oil market analyst for Energy Aspects Ltd. in London, said by phone. “There were no real disruptions this month, which in the case of Nigeria is a big deal.”

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OPEC crude oil production increased to a one-year high in August, led by surging output in Nigeria, a Bloomberg survey showed.Production by the 12-member Organization of Petroleum Exporting Countries rose by 891,000 barrels a day to 31.033 million, according to the survey...
oil, Africa, Brent, Nigeria
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2014-34-29
Friday, 29 Aug 2014 03:34 PM
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