Nigeria's crude oil production decreased by 40,000 barrels per day (bpd) in September, exacerbating its ongoing difficulties in meeting its OPEC production quota.

A report from Reuters on Thursday, based on a survey of OPEC's forthcoming September output, indicates that this decline represents another hurdle in Nigeria's attempts to increase production.

The report notes that Nigeria is not the only country facing such challenges. Other OPEC nations have also encountered disruptions, particularly Libya, where civil unrest has severely affected oil supplies.

Libya's production fell by 300,000 bpd, significantly impacting OPEC's overall output reduction for the month.

Since the start of 2024, Nigeria's crude production has fluctuated between 1.2 million and 1.3 million bpd, failing to meet both OPEC quotas and local demand, particularly as the nation seeks to support its struggling refineries. OPEC's latest data indicates that Nigeria produced 1.35 million bpd as of August.

In total, OPEC's oil output for September declined to 26.14 million bpd, a reduction of 390,000 bpd from the revised figures for August. The production issues in Libya were a major factor in this decrease, raising global concerns about oil supply amid increasing demand and heightened non-OPEC production.

While Libya is anticipated to recover following the resolution of its central bank leadership dispute, which led to the production cuts, other members like Iraq also faced difficulties. Iraq, despite efforts to align more closely with OPEC limits, was still producing 90,000 bpd over its quota.

On the other hand, Iran, which is exempt from OPEC's output restrictions, experienced a slight production increase, reaching its highest levels since 2018, despite ongoing U.S. sanctions.

Despite these production challenges, OPEC's total output remains approximately 130,000 bpd above the group's target, with Iraq's overproduction being a significant contributor to this surplus.