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Nigeria crude oil production declines 1.49% in Nov on OPEC+ deal

By on December 17, 2020 0 96 Views

Nigeria Crude oil production declined to 1.32 million barrels per day in November as the country complies with the Organisation of the Petroleum Exporting Countries (OPEC) output cut deal with allies.

Data obtained from OPEC showed that Nigeria’s oil output in October stood at 1.34 million bpd, indicating a 1.49 percent higher than November production output.

Total OPEC crude oil production averaged 25.11 million bpd in November, up by 0.71 million bpd in October.

“Crude oil output increased mainly in Libya and UAE, while production decreased primarily in Iraq,” the group said in its Monthly Oil Report for November.

OPEC and its allies, known as OPEC+, agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis.

The group known as OPEC+ decided to cut supply by a record 9.7 million bpd for May and June but the deal was extended in July by one month.

Members that did not implement 100 percent of their production cuts in May and June, including Nigeria, were asked to make extra reductions from July to September to compensate for their failing.

The OPEC+ cuts of 9.7 million bpd were later scaled back to 7.7 million bpd from August through the end of the year.

Earlier this month, OPEC+ agreed to gradually increase their oil production by 500,000 bpd in January. The group also agreed to hold monthly meetings started from January to decide on further production adjustment until the total production increase reaches two million bpd.

They also agreed to extend the compensation period until the end of March 2021 to ensure full compensation of overproduction from all participating countries.

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