Angola has again produced more crude oil than Nigeria for the third consecutive month, as Africa’s biggest economy lost 74,000 barrels per day in July compared with the previous month of June.
In May and June, Angola produced more crude oil than Nigeria, despite an increase in the country’s output. OPEC’s monthly report for July showed that Nigeria’s oil production declined by 74,000 barrels per day (bpd) to 1.08 million bpd in July from 1.26 million in June, based on direct communication.
On its part, Angola’s oil production rose to 1.18 million bpd in July, up from 1.17 million bpd in June.
OPEC uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries.
Nigeria recorded the second greatest decline in production among its OPEC peers in July, even though Angola’s also reduced, it still beat Nigeria in terms of barrels drilled.
“Crude oil output increased mainly in Saudi Arabia, the UAE and Kuwait, while production in Venezuela and Angola declined,” the oil cartel said.
OPEC has cut its 2022 forecast for growth in world oil demand for a third time since April, citing the economic impact of Russia’s invasion of Ukraine, high inflation and efforts to contain the coronavirus pandemic.
But the view from OPEC contrasts with that of the International Energy Agency (IEA), the adviser to industrialised countries, which earlier raised its 2022 demand growth outlook.
OPEC in a monthly report said it expects 2022 oil demand to rise by 3.1 million barrels per day (bpd), or 3.2 per cent, down 260,000 bpd from the previous forecast. The IEA raised its forecast by 380,000 bpd to 2.1 million bpd.
Oil use has rebounded from the worst of the pandemic and is set to exceed 2019 levels this year even after prices hit record highs. However, high prices and Chinese coronavirus outbreaks have eaten into OPEC’s 2022 growth projections.
“Global oil market fundamentals continued their strong recovery to pre-COVID-19 levels for most of the first half of 2022, albeit signs of slowing growth in the world economy and oil demand have emerged,” OPEC said in the report.
The international oil cartel cut its 2022 global economic growth forecast to 3.1 per cent from 3.5 per cent and trimmed next year to 3.1 per cent, saying that the prospect of further weakness remained.
“This is, however, still solid growth, when compared with pre-pandemic growth levels. Therefore, it is obvious that significant downside risk prevails,” OPEC said.
Oil prices held on to an earlier gain after the OPEC report was released, finding support from the IEA’s view on demand and trading above $98 a barrel at the weekend.
OPEC and allies, including Russia, known collectively as OPEC+, are ramping up oil output after record cuts were put in place as the pandemic took hold in 2020.