Angola edges Nigeria to remain Africa’s biggest oil producer for second straight month

New data released by the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday, July 12 shows Angola produced more crude oil than Nigeria in the month of June despite Nigeria recording its biggest production jump in months by 134,000 barrels per barrel (bpd) to 1.158 million bpd in June from 1.024 million in May.

Angola’s oil production rose to 1.175 million bpd in June, up from 1.162 million bpd in May making Nigeria lose its status as Africa’s top oil producer to Angola for two months running reducing it’s ranking among its peers in OPEC.

Part of the OPEC report reads: “On a monthly average, crude differentials to the North Sea Dated benchmark of Bonny Light, Forcados and Qua Iboe rose by $2.45, $3.26, and $2.83, respectively m-o-m in June, to settle at a premium of $5.28/b, $7.61/b, and $6.53/b,”

OPEC said Angolan crude differentials also rose on demand from Europe, adding: “The crude differential of medium-heavy sweet crude Cabinda rose in June by $2.83 m-o-m on average to a premium of $3.76/b.”

According to secondary sources, OPEC’s crude oil production averaged 28.72 million bpd in June 2022, higher by 234,000 bpd compared to the previous month.

“Crude oil output increased mainly in Saudi Arabia, the UAE, IR Iran, Kuwait and Angola, while production in Libya and Venezuela declined,” the 13-member oil cartel said.

OPEC said despite the improvement in fossil fuel prices, the short-term economic outlook for Nigeria was clouded by high inflation, and in response to the elevated inflationary pressures, the Central Bank of Nigeria raised its policy rate by 150 basis points to 13 percent, bringing borrowing costs to the highest since April of 2020.

It said: “Overall, the above-average fossil fuel prices support a firmly positive outlook for the rest of the year, but concerns over soaring inflation would increase uncertainty next year.”

Preliminary data indicates that global liquids production in June increased by 1.32 million bpd to average 99.82 million bpd compared with the previous month.

The report said: “The share of OPEC crude oil in total global production decreased by 0.1 percentage points to 28.8 percent in June compared with the previous month.

“Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and non-conventional oil, while estimates for OPEC crude production are based on secondary sources.”

“Total oil demand is projected to average 100.3 million bpd. In 1Q22, demand was revised up amid strong economic growth in most consuming countries and a lower baseline,” it said.