• Saturday, December 02, 2023
businessday logo


Nigeria’s oil output dipped by 10% to 1.26m bpd in February — OPEC

Oil at highest since 2014 |but Nigeria’s oil output dips as OPEC plots gradual hike in supply

The Organisation of Petroleum Exporting Countries (OPEC) says Nigeria’s oil output has reduced by 10 percent to 1.26 million barrels per day (bpd) in February 2022.

OPEC, in its monthly oil market report (MOMR) for March 2022, has indicated that Nigeria oil production reduced by 141 thousand barrels per barrel (tb/d) to 1.26 million bpd in February from 1.40 million in January 2022, based on direct communication.

The country also recorded a fall in its oil output by 10000 tb/d to 1.42 million bpd recorded in February from the 1.43 million bpd recorded in the previous month, according to the secondary source.

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

According to secondary sources, the total OPEC-13 crude oil production averaged 28.47 mb/d in February 2022, higher by 0.44 mb/d Month-on-Month (m-o-m).

Read also: Nigeria hopeful of improved oil output as Heirs Holdings begins work on OML 17

“Crude oil output increased mainly in Saudi Arabia and Libya, while production in Nigeria and Equatorial Guinea declined,” the report noted.

While the oil cartel indicated that the increasing oil price might have provided ample support for the Nigerian economy.

However, it noted that “the disruption to global trade flows and supply shortages could offset this positive impact.

While noting this, the demand for OPEC crude in 2022 was revised up by 0.1 mb/d from the previous month to stand at 29.0 mb/d, which was around 1.0 mb/d higher than in 2021.

“Compared with the previous assessment, Quarter one, (1Q22) and 4Q22 were revised up by around 0.3 mb/d each, while 2Q22 remained unchanged from the previous assessment and 3Q22 was revised down by around 0.1 mb/d,” it said.

The report added that “compared with the same quarters in 2021, demand for OPEC crude in 1Q22, 2Q22, 3Q22 and 4Q22 is forecast to be higher by 1.9 mb/d, 1.3 mb/d, 0.6 mb/d and 0.2 mb/d, respectively.

Meanwhile, it was observed that the cost of Brent, the crude against which Nigeria’s oil is priced, dropped by $8.36 to close at $98.54 per barrel as of 4.27pm Nigerian time on Tuesday.