The Minister of State for Petroleum, Timipre Sylvia has said that OPEC+ alliance of oil producers was running out of capacity to pump more crude, including its biggest member Saudi Arabia.
“Some people believe the prices to be a little bit on the high side and expect us to pump a little bit more but at this moment there is really little additional capacity,” said Sylva.
“At this moment I think the prices are firming up and I don’t think there will be any surprises in OPEC in August,” Sylva said.
Nigeria, Africa’s biggest producer, has struggled with declining production for years, with international majors selling onshore and shallow-water fields to Nigerian independent producers for more than a decade. The country pumped 1.49 million barrels a day in May, according to a Bloomberg survey, with a quota allowance to produce 1.77 million barrels a day in June and 1.80 million in July.
“By end of August generally the commitment is that we’re at least going to produce our OPEC quota and then of course look at going even beyond that after August,” he said.