For the month of December, Nigeria’s average daily crude oil production reached 1.418 million barrels from the 1.31 million barrels recorded in the month of November.
This represents an increase of 100 tb/d from what was recorded in the previous month.
This is according to OPEC’s monthly oil market report for the month of December. According to the report, total crude oil production from the cartel’s member countries increased by 73,000 barrels daily on a month-on-month basis.
The increase in the group’s oil production was propelled by rising production in Iraq and Nigeria while countries like Kuwait, Saudi Arabia and IR Iran saw reduction in daily production levels.
Together, the cartel’s members produced 26.7million barrels of crude oil daily- an increase of 73,000 barrels compared to the 26.62 million barrels reported in November.
Data from direct communication with OPEC saw Nigeria’s crude oil production increase by 85,000 barrels daily from 1.25 mb/d to 1.335mb/d production.
Insights
OPEC has sought to cut supply of crude oil in the international market as a measure to push prices- a move mostly spearheaded by Saudi Arabia.
In December, OPEC reduced the production quota of Nigeria and other African members notably Angola. Although these countries in the past have failed to meet their production quota with Nigeria averaging production of 1.3mb/d far below OPEC’s production quota of 1.7mb/d.
The decision to cuts production quota prompted Angola to exit the cartel stating it no longer serves its interest. Nigeria’s production quota was also slashed in December to 1.58mb/d, but it has affirmed its commitment to the group
What you should know
Nigeria’s crude oil production has limped in recent years occasioned by divestment from oil majors, crude oil theft and vandalism across the Niger Delta.
However, the Tinubu administration hopes to restore investors’ confidence and produce two million barrels daily in 2024 according to the petroleum minister Heineken Lokpobiri.
