The Organisation of the Petroleum Exporting Countries (OPEC) says that Nigeria recorded an average of 1.183 million barrels per day (bpd) in its crude oil production for the month of July 2022, according to secondary sources.
This represents an increase of 7,000 barrels per day when compared to the average of 1.176 million barrels per day that was achieved in June 2022.
This disclosure is contained in OPEC’s Oil Market Report for August 2022, which was released on Thursday, August 11, 2022, and seen by Nairametrics.
However, the OPEC’s report from direct communications shows that Nigeria’s crude oil production averaged 1.084 million barrels per day, representing a 74,000 barrels per day drop when compared to the 1.158 million barrels per day that was recorded in the month of June 2022.
The report further shows the production level from Nigeria is a further decline when compared to the average output of 1.376 million barrels per day and 1.205 million barrels per day that was achieved in the first and second quarters of 2022 respectively.
What the OPEC report is saying
The report partly reads, “According to secondary sources, total OPEC-13 crude oil production averaged 28.92 mb/d in July 2022, higher by 216,000 barrels per day month-on-month.
“Crude oil output increased mainly in Saudi Arabia, the United Arab Emirates, and Kuwait, while production in Venezuela and Angola declined.’’
Nigeria’s PMI for July records improvement
OPEC in its reports also said that Nigeria’s July Stanbic IBTC Bank Purchasing Manger’s Index (PMI) rose to 53.2 from 50.9 in June, amid stronger inflows of new orders.
It said that this helped to underpin a further improvement in operating conditions in the Nigerian non-oil private sector.
OPEC further stated, “Yet, purchase and output price inflation accelerated for the fifth straight month to 18.6 per cent in June 2022, against 17.7 per cent in May, amid unfavourable exchange rate movements and higher fuel costs.
“Nevertheless, business sentiment improved as firms reported hopes of securing greater business investments.’’
What you should know
- Nigeria’s average crude oil production level for the month of July is still a far cry from the production quota of 1.799 million barrels that was allocated to it by OPEC for the month of July as the country is still battling with low production level due to sabotage, pipeline vandalism and increasing cases of crude oil theft.
- The Nigerian had said that it is developing some regulatory initiatives which cuts across, technical, socio-economic and security issues, aimed at reducing to the barest minimum level these challenges and boost the country’s crude oil production.
- The Minister of State for Petroleum Resources, Timipre Sylva, had earlier in June, said that Nigeria would work towards meeting its OPEC quota by August
