Nigeria has met and exceeded its Organisation of Petroleum Exporting Countries (OPEC) quota of 1.5mbpd for the third consecutive month.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in a statement on Tuesday.

The statement has it that in July 2026, Nigeria produced 1.505mbpd of crude oil and 0.17mbpd of condensate, making combined daily production to 1.67mbpd.

During the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.

Although Nigeria met its OPEC quota in July, the statistics show that, on a month-on-month basis, production fell by 4 per cent.

READ ALSO: NNPC/Shell Vision First Initiative Impact over 10,000

The NUPRC attributed the decline in production to operational challenges at the Erha and Akpo fields, which affected output during the period under review.

These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.

Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures to maintain production efficiency and minimise the impact of operational constraints.

Crude oil and condensate supply to local refineries rose by 88.4 percent to 53.7 million barrels in the second quarter of 2026, Q2’26, from 28.5 million barrels in the first quarter, Q1’26, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has said.

The commission, in its Q2 2026 statistics on the enforcement of the Domestic Crude Supply Obligation, DCSO, said the 53.7 million barrels supplied to domestic refiners represented 97.4 percent performance during the quarter.

The DCSO is being enforced by the NUPRC pursuant to Section 109 of the Petroleum Industry Act, PIA, which provides for the supply of crude oil produced in Nigeria to domestic refineries.

According to the commission, the increase in crude supply coincided with higher domestic oil production and the execution of long-term crude supply agreements supported by bankable Sales and Purchase Agreements, SPAs, between producers and domestic refiners.

READ ALSO: Oil Prices Jump Further as Hopes for Hormuz Deal Fade

The NUPRC said it conducts monthly consultations with crude oil producers and licensed domestic refineries, following which specific volumes of crude oil and condensate are allocated to producers for supply to local refiners.

It, however, noted that the DCSO operates on a “willing buyer, willing seller” basis in accordance with the PIA, which affects the volumes eventually supplied and accepted.

In April, the NUPRC allocated 18.13 million barrels to producers, while producers offered 19.31 million barrels to domestic refiners. Actual supply stood at 20.88 million barrels, representing 114.9 percent performance against the allocation.

In May, the commission allocated 18.78 million barrels, while producers offered 23.19 million barrels to local refiners. Actual supply fell to 14.23 million barrels, representing 75.8 percent compliance.

Supply increased in June, with the NUPRC allocating 18.17 million barrels to producers, while producers offered 26.84 million barrels to refiners. Actual supply stood at 18.61 million barrels, representing 102.4 percent performance.

The commission said the figures showed that the DCSO was being actively administered and enforced, adding that the improvement was supported by increased crude production and stronger commercial arrangements between producers and refiners.

At the refinery level, the NUPRC said Dangote Refinery required 63 million barrels of crude in Q2, while producers offered 68.1 million barrels.

The 68.1 million barrels offered represented 98 percent of the total crude volumes offered by producers during the quarter.

However, the refinery accepted 52.6 million barrels, representing 78 percent of the volume offered to it.

The NUPRC said it remained committed to supporting the Federal Government’s objective of achieving energy sufficiency by leveraging the PIA to sustain the growth in crude oil production and continuously enforce the DCSO.

Oil prices extended a strong rally Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year.

Crude has surged around 10 per cent over the past week, with the United States and Iran appearing no closer to a deal on the crucial waterway despite upbeat comments from the White House earlier in the month.

In the latest blow, Donald Trump said Monday he would seek conflict compensation from Iran as part of any peace negotiations, citing attacks and killings stretching back decades allegedly backed or perpetrated by Tehran.

The US president’s announcement was a direct response to Tehran’s demand for US war reparations as a precondition to any resolution of the crisis.

READ ALSO: DPRP Tops US for Second Consecutive Month as Europe’s Largest Jet Fuel Supplier

Trump’s remarks came a day after he said he was “low-keying” his approach to the conflict, suggesting he was prepared to let economic pressure mount in place of further military strikes.

However, the latest back and forth risks putting a quick agreement further out of reach, and on Monday both main crude contracts jumped around five per cent. They rose more than one per cent on Tuesday.

“In the absence of any positive headlines on negotiations to reopen the strait, pressure on oil prices has been upward,” wrote Jason Wong at BNZ.

And Stephen Innes, global strategist at Quintex Intel, said: “In effect, both sides are trying to weaponise the oil barrel without firing another shot. Washington is trying to choke Iran’s ability to get its crude out, while Tehran is squeezing the artery through which everybody else’s crude gets through.

“It is quite the game of chicken.”

The prospect of oil prices remaining elevated for the time being has revived concerns over inflation and boosted the chances of interest rate increases.

While a surprise loss of more than 20,000 jobs in the US economy last month eased fears of a Federal Reserve hike, a spike in price pressures could force the bank’s hand.

Cleveland Fed boss Beth Hammack told Yahoo Finance on Monday: “I would say in general, one 25-basis-point move probably doesn’t do a whole lot for the economy.

“So it’s probably some number of (movements). But I don’t want to prejudge what that number is going to be.”

The US-Iran deadlock and rising crude costs come as traders await the release of consumer price data on Wednesday, which could play a key role in guiding the Fed on its next move.

Asian equities were mixed following a tepid day on Wall Street.

Hong Kong, Shanghai, Wellington, Mumbai, Bangkok and Jakarta all retreated but there were gains in Seoul, Sydney, Singapore, Taipei and Manila. London and Frankfurt opened higher while Paris was flat.

Tokyo was closed for a holiday.

Key figures around 0715 GMT include: West Texas Intermediate: UP 1.5 per cent at $83.37 per barrel, Brent North Sea Crude: UP 1.3 per cent at $88.85 per barrel, Hong Kong – Hang Seng Index: DOWN 1.0 per cent at 25,679.98, Shanghai – Composite: DOWN 0.8 per cent at 3,934.09 (close).

London – FTSE 100: UP 0.1 per cent at 10,872.52, Tokyo – Nikkei 225: Closed for holiday, Euro/dollar: DOWN at $1.1535 from $1.1543 on Monday, Pound/dollar: DOWN at $1.3505 from $1.3508, Dollar/yen: DOWN at 159.22 yen from 159.31 yen, Euro/pound: DOWN at 85.42 pence from 85.45 pence, New York – DOW: DOWN 0.1 percent at 53,975.98 (close).

Courtesy – AFP