Major oil over-producers, Nigeria & Iraq, forced to cut production

Adebayo Obajemu

The U.S. Energy Information Administration (EIA) recently released its data showing a 5.654-million-barrel figure, which is higher than the 3.114-million-barrel draw predicted. Such increase came as a shocker to many oil stake holders, prompting OPEC+ to put more pressure on over-producers such as Nigeria and Iraq, to meet the level of compliance set by limiting their oil production.

Recall that barely two months ago, Nigeria and Iraq were reported not to have honoured their pledges, and had promised to limit global crude oil production by 9.7 million barrels of crude oil per day.

Iraq was able to achieve about 38% compliance rate of its agreed output cut for the month of May, while Nigeria, achieved much lower compliance of the agreed output cut, recording 19% compliance of what was agreed.

Brent crude was slightly up by 0.04% to trade at $43.23 at 5:42 am local time on Thursday, while the West Texas Intermediate was slightly down 0.7% to trade at $4