Oil Daily | Iraq Cuts Exports, Nigeria and Libya Eye Production Boosts, OPEC Delays Output Increase
Friday, Sep 6, 2024 8:00 am ET
3min read 【Global Oil Supply and Demand】
Crude oil exports from Iraq were reduced to around 3.3 million barrels daily last month in a boost to the country’s compliance with OPEC supply curbs. This was down from 3.48 million barrels daily in July and 3.41 million barrels daily in June. Reuters cited the Iraqi oil ministry as saying the country would maintain reduced levels of exports in the coming months as well as it seeks to compensate for overproduction and overexporting earlier in the year.
Earlier this summer, Nigeria’s national oil company NNPC declared a state of emergency on production in Nigeria’s oil and gas industry as Africa’s largest oil producer struggles to boost output. NNPC believes that Nigeria needs to take urgent action to address the challenges that have plagued the oil and gas industry for years, said NNPC Group CEO Mele Kyari.
Oil theft and pipeline vandalism have long plagued Nigeria’s upstream oil and gas industry, driving majors out of the country and often resulting in force majeure at the key crude oil export terminals.
In further bearish news for oil, Libya’s two main political factions were reported to be close to reaching a deal on the appointment of a new governor of the country’s central bank, which would put an end to oil field shutdowns that took 700,000 bpd of Libyan crude off the market.
【Oil-Producing Countries Dynamics】
The latest upstream deal in Nigeria’s oil sector is expected to help boost crude production in the country to 2 million barrels per day bpd by the end of 2024, Heineken Lokpobiri, Nigeria’s Minister of State Petroleum Resources, has said. The latest acquisition of assets of a foreign firm by a local oil company was completed at the end of August when Italy’s energy major Eni announced the closing of the sale of its wholly owned subsidiary, Nigerian Agip Oil Company Ltd NAOC, Oando PLC, Nigeria’s leading local energy firm.
OPEC has reached a deal to delay the unwinding of its production cuts that were planned to begin in October, anonymous OPEC sources told Bloomberg on Tuesday. The group now plans to ease output cuts beginning in December. OPEC’s existing plan is to begin the careful process of rolling back the current voluntary production cuts starting next month, which would see 180,000 bpd added back into the market in October.
OPEC members have given up oil market share in an effort to balance the market. Meanwhile, other non-OPEC members have snapped up what OPEC has given up. Some OPEC members have also received criticism for not fully adhering to its agreed-upon production plan.
【Latest Oil Policies】
Nigeria could soon let its new refinery, Africa’s biggest crude processing facility, set the price of gasoline it sells to marketers in a major shift of policy control over fuel prices, officials familiar with the plans told Bloomberg on Thursday. As of next month, the Dangote refinery – which has yet to produce gasoline – could begin setting the price of the fuel it is selling to marketers, according to Bloomberg’s anonymous sources.
U.S. President Joe Biden on Thursday unveiled $7.3 billion investment in clean and affordable electricity American rural communities as the president looks to help his Vice President and Democratic presidential candidate Kamala Harris to win voters in rural battleground states. President Biden’s announcement, made in Wisconsin, pledges the multi-billion investment which will be funded by the Inflation Reduction Act IRA.
Singapore will seek to import around 6 gigawatts GW of low-carbon electricity by 2035, up from an initial target of 4 GW, the Energy Market Authority EMA said on Thursday, as the country looks to decarbonize its power sector amid growing demand. Low-carbon electricity imports are part of Singapore’s overall efforts to decarbonize the power sector, which currently accounts for about 40% of the nation’s carbon emissions.
【Industry News】
A sanctioned LNG carrier is enroute to the Arctic LNG 2 facility to load what would be the fourth cargo of liquefied gas from the newest LNG facility in Russia. Bloomberg cited ship-tracking data as showing Everest Energy moving to the facility on the Gydan Peninsula in Siberia. The vessel was placed under U.S. sanctions last year, as was the Arctic LNG 2 facility itself. Earlier this week, the Financial Times reported that Novatek was shipping LNG from its second Arctic facility to floating storage because of the sanctions.
The Matterhorn natural gas pipeline in Texas has begun moving small amounts of gas from the Permian basin in West Texas toward the Gulf Coast, energy executives at U.S. oil and gas company Permian Resources NYSEPR have revealed. Currently under construction, the Matterhorn will move large volumes of gas that has been trapped in the Permian basin, causing prices at the Waha Hub in West Texas to turn negative.
Crude oil exports from Iraq were reduced to around 3.3 million barrels daily last month in a boost to the country’s compliance with OPEC supply curbs. This was down from 3.48 million barrels daily in July and 3.41 million barrels daily in June. Reuters cited the Iraqi oil ministry as saying the country would maintain reduced levels of exports in the coming months as well as it seeks to compensate for overproduction and overexporting earlier in the year.
Earlier this summer, Nigeria’s national oil company NNPC declared a state of emergency on production in Nigeria’s oil and gas industry as Africa’s largest oil producer struggles to boost output. NNPC believes that Nigeria needs to take urgent action to address the challenges that have plagued the oil and gas industry for years, said NNPC Group CEO Mele Kyari.
Oil theft and pipeline vandalism have long plagued Nigeria’s upstream oil and gas industry, driving majors out of the country and often resulting in force majeure at the key crude oil export terminals.
In further bearish news for oil, Libya’s two main political factions were reported to be close to reaching a deal on the appointment of a new governor of the country’s central bank, which would put an end to oil field shutdowns that took 700,000 bpd of Libyan crude off the market.
【Oil-Producing Countries Dynamics】
The latest upstream deal in Nigeria’s oil sector is expected to help boost crude production in the country to 2 million barrels per day bpd by the end of 2024, Heineken Lokpobiri, Nigeria’s Minister of State Petroleum Resources, has said. The latest acquisition of assets of a foreign firm by a local oil company was completed at the end of August when Italy’s energy major Eni announced the closing of the sale of its wholly owned subsidiary, Nigerian Agip Oil Company Ltd NAOC, Oando PLC, Nigeria’s leading local energy firm.
OPEC has reached a deal to delay the unwinding of its production cuts that were planned to begin in October, anonymous OPEC sources told Bloomberg on Tuesday. The group now plans to ease output cuts beginning in December. OPEC’s existing plan is to begin the careful process of rolling back the current voluntary production cuts starting next month, which would see 180,000 bpd added back into the market in October.
OPEC members have given up oil market share in an effort to balance the market. Meanwhile, other non-OPEC members have snapped up what OPEC has given up. Some OPEC members have also received criticism for not fully adhering to its agreed-upon production plan.
【Latest Oil Policies】
Nigeria could soon let its new refinery, Africa’s biggest crude processing facility, set the price of gasoline it sells to marketers in a major shift of policy control over fuel prices, officials familiar with the plans told Bloomberg on Thursday. As of next month, the Dangote refinery – which has yet to produce gasoline – could begin setting the price of the fuel it is selling to marketers, according to Bloomberg’s anonymous sources.
U.S. President Joe Biden on Thursday unveiled $7.3 billion investment in clean and affordable electricity American rural communities as the president looks to help his Vice President and Democratic presidential candidate Kamala Harris to win voters in rural battleground states. President Biden’s announcement, made in Wisconsin, pledges the multi-billion investment which will be funded by the Inflation Reduction Act IRA.
Singapore will seek to import around 6 gigawatts GW of low-carbon electricity by 2035, up from an initial target of 4 GW, the Energy Market Authority EMA said on Thursday, as the country looks to decarbonize its power sector amid growing demand. Low-carbon electricity imports are part of Singapore’s overall efforts to decarbonize the power sector, which currently accounts for about 40% of the nation’s carbon emissions.
【Industry News】
A sanctioned LNG carrier is enroute to the Arctic LNG 2 facility to load what would be the fourth cargo of liquefied gas from the newest LNG facility in Russia. Bloomberg cited ship-tracking data as showing Everest Energy moving to the facility on the Gydan Peninsula in Siberia. The vessel was placed under U.S. sanctions last year, as was the Arctic LNG 2 facility itself. Earlier this week, the Financial Times reported that Novatek was shipping LNG from its second Arctic facility to floating storage because of the sanctions.
The Matterhorn natural gas pipeline in Texas has begun moving small amounts of gas from the Permian basin in West Texas toward the Gulf Coast, energy executives at U.S. oil and gas company Permian Resources NYSEPR have revealed. Currently under construction, the Matterhorn will move large volumes of gas that has been trapped in the Permian basin, causing prices at the Waha Hub in West Texas to turn negative.
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