Nigeria says OPEC has run out of spare capacity


OPEC does not have the extra spare capacity to increase crude oil production much more than it does today, Nigerian Oil Minister Timipre Sylva told Anadolu Agency on Friday.

“It’s not something you can turn on a tap for at this point. You have to have the extra capacity, the spare capacity to tap into, but it takes a lot of work and a lot of investment to have the extra production,” the Nigerian minister told the Turkish News Agency in an interview.

Many OPEC producers, including Nigeria, are currently pumping at maximum capacity, Sylva noted.

“If there is anything we can do to produce more, OPEC will be the first to produce more. But unfortunately that capacity does not exist in most OPEC countries,” a- he told Anadolu Agency.

OPEC isn’t too happy with sky-high oil prices because it wants prices at levels that don’t hurt consumers of its crude, but the organization can’t do much to pump more, the official said. Nigerian minister.

There is “absolutely” a supply problem in the oil sector right now, Jeff Currie, global head of commodities at Goldman Sachs, told Bloomberg earlier this week.

There are widespread supply constraints among oil producers, especially non-central OPEC, Currie said. All producers except Saudi Arabia and the United Arab Emirates are producing less today than they were in 2020, he added. Add to that the Russian shock and supply constraints are the most severe in decades, since the 1970s, according to Currie.

In February, the OPEC+ group continued to severely underperform its oil production levels against the pact target, with February production at more than a million barrels per day (bpd) below the collective quota and a compliance rate jumping to 136%, Reuters reported last month.

In March, OPEC’s second-largest producer Iraq produced just 4.15 million bpd of crude oil, well below its quota under the OPEC+ deal, the data shows. of the Iraqi national oil marketing company SOMO consulted by Reuters.

Oil production from OPEC’s key partner in the OPEC+ deal, Russia, has also shown signs of decline in recent weeks.

By Tsvetana Paraskova for Oilprice.com

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