The Organisation of Petroleum Exporting Countries (OPEC) has revealed that Nigeria’s crude oil production fell to 1.417 million barrels per day in the month of February compared to 1.427 for the month of January.
OPEC revealed this in its Monthly Oil Market report, warning that disruption to global trade flows and supply shortages could offset the positive impact of increased oil prices for Nigeria.
Reuters survey had reported that Nigeria produced 1.46 million barrels a day in January 2022, from a monthly output target of 1,683,000 BPD.
What OPEC is saying
It revealed that Nigeria’s GDP grew about 4.0% in 4Q21, which was the fifth consecutive quarter of economic expansion, amid the ongoing recovery from the effects of the pandemic that dragged down the country’s main economic activities.
- It warned that “Higher food costs related to the geopolitical tensions could further fuel inflation. Stanbic IBTC Bank Nigeria’s PMI surged to 57.3 in February from 53.7 in the previous month, as the non-oil private sector expanded the most since November 2019.
- “The increasing oil price might provide ample support for the Nigerian economy. Yet the disruption to global trade flows and supply shortages could offset this positive impact.
- On demand, it said, “World oil demand growth in 2021 is revised up by 0.05 mb/d, reflecting the actual data across the regions, to now stand at 5.7 mb/d.
- “The 4Q21 figure for all OECD region is revised higher, as a result of the better performance. The OECD in 2021 increased by 2.7 mb/d, while the non-OECD showed growth of 3.1 mb/d.
- They added that due to the mentioned developments and the extremely high uncertainty surrounding global macroeconomic performance, the 2022 forecast for global oil demand growth remains under assessment at 4.2 mb/d, with OECD forecast at 1.9 mb/d and non-OECD at 2.3 mb/d.
- For oil production for February, it warned that “According to secondary sources, total OPEC-13 crude oil production averaged 28.47 mb/d in February 2022, higher by 0.44 mb/d Month-on-Month.
- “Crude oil output increased mainly in Saudi Arabia and Libya, while production in Nigeria and Equatorial Guinea declined.”
In case you missed it
Recall Nairametrics reported last month that Nigeria’s crude oil production grew by 50,000BPD in a month, from 1.41 million barrels a day average in December 2021 to 1.46 million barrels a day in January 2022, from a monthly output target of 1,683,000 BPD, according to Reuters oil production survey, with data retrieved from Nigeria’s Agbami and Egina streams.