S&P Global Platts calculations reveal that Nigeria and other members of the Organisation of Petroleum Exporting Countries(OPEC) slashed their combined crude output in June to a three-decade low.
The 13-member group pumped 22.31 million barrels per day, its lowest collective output since September 1990 when the launch of the first Gulf War nearly wiped out crude oil production in Iraq and Kuwait, the survey found.
In a bid to tighten the oil market in its emergence from the depths of the coronavirus crisis, the alliance, known as OPEC+, delivered 106 percent of its committed production cuts, according to Platts calculations, a rise from May’s 85 percent.
The combined output of the 20 OPEC and non-OPEC countries with quotas under the deal was 10.32 million bpd below their late 2018 reference levels, meaning the coalition took more than 10 percent of pre-pandemic oil supply off the market.
The drastic cuts demonstrate how urgently OPEC+ members, who depend greatly on oil revenues to fund their budgets, are striving to prevent another collapse in prices.
But as the global economy takes tentative steps to recovering from the coronavirus pandemic, driving increases in oil demand, some delegates have said they are expecting an easing of the quotas in August as scheduled, according to S&P Global Platts.