12 May, 2017
Crude oil production in Nigeria rose by 274,000 barrels per day in April, the Organisation of Petroleum Exporting Countries, OPEC, said on Thursday.
As a result, OPEC cut the forecast 2017 demand for its crude by 300,000 bpd.
Oil prices have since gained support but global inventories remain high, pulling crude LCOc1 back toward $50 a barrel and putting pressure on OPEC to extend or possibly add to the cuts at least until the end of 2017.
OPEC crude oil production decreased by 18,000 bpd, from the previous month to average 31.73 million bpd in April, sources said.
OPEC has been urging other producers to join the supply pact and, together with participating non-member countries, meets to set policy on May 25 in Vienna. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
While decreased stocks and an improving global economy were supporting oil demand, "continued rebalancing in the oil market by year-end will require the collective efforts of all oil producers to increase market stability", OPEC said.
Amid reports of an Organization of the Petroleum Exporting Countries (OPEC) production cutback consensus reaching fever pitch and the market responding accordingly, Vitol delivered a one-two punch to optimists by reminding them that the oil market is not seeing a de-stocking that was expected and that US shale continues to grow faster than anyone expected.
The two biggest producers participating in the cuts, OPEC's Saudi Arabia and non-member Russian Federation, both signaled willingness on May 8 to extend the deal.
Ahead of a May 25 meeting of the cartel where its members and Russian Federation are expected to roll over an agreement to cut production, OPEC said in its monthly market report that common policies were needed for market stability.
The former Soviet republic produces 260K bpd so any cut is basically a token measure.
Numerous top energy analysts tend to agree with al-Falih's near-term assessment - that the recent selloff might have gone a little too far due to some technical trading particulars rather than the reemergence of a supply glut.
The United Arab Emirates' production increased by 15,000 bpd to 2.988 million bpd in April.
