Libya Becomes Africa’s Biggest Oil Producer Overtaking Nigeria

Libya has overtaken Nigeria as Africa’s top oil producer after the country’s crude oil production fell further last month amid lingering supply disruptions.

In a new report by the Organization of the Petroleum Exporting Countries, it was gathered that Nigeria’s oil output fell to about 1.23 million barrels per day in October from about 1.25 million BPD in the previous month.

OPEC noted that Libya which overtook Angola as the second-biggest producer on the continent in December last year saw its oil production rise to 1.24 million BPD in October from 1.16 million BPD in September based on direct communication.

OPEC uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries.

Nigeria’s production is said to have declined by 45,000 BPD to 1.35 million BPD in October from about 1.40 million BPD in September, and it is reported that this is the second-biggest drop in output in October among its peers in OPEC, after Iraq, based on direct communication. The country’s production fell the most in the month, according to secondary sources.

Secondary sources also revealed that the 13-member oil cartel said its total crude production averaged 27.45 million BPD in October, higher by 220,000 BPD month-on-month.

The sources said; “Crude oil output increased mainly in Saudi Arabia, Venezuela, the UAE, and Kuwait, while production in Nigeria, Gabon, and Equatorial Guinea declined.”

OPEC hinged the supply disruptions in Libya and Nigeria on crude differentials of light and medium sweet crude which rose in the Mediterranean and West African markets in October on good buying interest from European buyers and strong refining margins.

OPEC said; “However, soft demand from Asian refiners for Atlantic Basin crude amid unfavorable west-to-east arbitrage capped the rise. Crude differentials of Bonny Light, Forcados, and Qua Iboe rose firmly on a monthly average in October by 70¢, $1.06, and 75¢, respectively, to stand at premiums of 10¢/b, 27¢/b, and 4¢/b.”