Angola overtakes Nigeria as Africa’s largest oil producer

The Organisation of Petroleum Exporting Countries
(OPEC), yesterday revealed that Angola now leads
the continent in oil production, despite perceived
growth in the Nigerian managers’ index.
This is the third time Angola will overtake Nigeria
as the continent’s largest producer, following Niger
Delta unrest in April, July 2016. OPEC’s monthly oil
market report (MOMR) released yesterday revealed
that Angola’s production was now at 1.651 million
barrels per day, according to secondary sources.
For direct communications between the country
and OPEC, production levels were put at an average
of 1.615 million barrels per day. Nigeria, on the
other hand, had its production levels at 1.576
million barrels per day and 1.604 million barrels per
day, according to secondary sources and direct
communications, respectively.
OPEC confirmed its member countries production
levels from secondary sources – traders in the
industry – and via direct communication with the
country’s leadership.
Using both sources, Angola stands as Africa’s
largest oil producer, after losing that spot to Nigeria
in December 2016. OPEC also revealed that Nigeria,
Saudi Arabia and the United Arab Emirates
recorded massive improvements in their economic
outlook.
“In Nigeria, operating conditions in the country’s
private sector improved in January for the first time
in a year, as suggested by the Stanbic IBTC Bank
Nigeria PMI,” OPEC said.
Also, top OPEC oil producer, Saudi Arabia made a
large cut in its crude output in January to support
prices and lessen a glut, helping boost compliance
with the group’s supply-reduction deal to a record
high of more than 90 percent.
The country is curbing its output by about 1.2
million barrels per day (bpd) from Jan. 1. Russia
and 10 other non-OPEC producers agreed to cut
half as much.
Supply from the 11 OPEC members with production
targets under the deal fell to 29.888 million bpd
last month, according to figures from secondary
sources that OPEC uses to monitor its output.
OPEC published the data in its monthly report on
Monday.
Oil prices pared an earlier decline after the release
of the report, trading above $56 a barrel. OPEC’s
cut is supporting the market, but expectations that
the move will lead to a revival in U.S. shale drilling
have limited the rally.