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Wednesday, October 27, 2021

Nigeria crude oil production rises to 1.45 mbpd in Sept vs 1.29 mbpd in Aug ~OPEC

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Nigeria produced a total of 1.451 million bpd crude oil in September, indicating 155,000 additional barrels of crude oil per day (bpd) compared with the previous month’s output, data from the Monthly Oil Market Report (MOMR) published by the Organisation of Petroleum Exporting Countries (OPEC), indicated.

The country had produced 1.296 million barrels per day averagely in August, the 1.385 million bpd in July and the 1.413 million bpd, 1.423 million bpd and 1.376 million bpd produced in the first three quarters of this year.

Nigeria has been underperforming in the last few months due to years of underinvestment exacerbated by the shutting down of various assets last year following OPEC cuts brought about by the COVID-19 pandemic.

Aside deteriorating facilities, theft and general inefficiency in production, crude grade, Forcados has spent the third of the month on force majeure in addition to the damage to the Nembe Creek Trunk Line, which has severely impaired exports of Bonny Light.

READ ALSO: Nigeria tax spat reignites federalism debate

However, despite the decline in crude oil production, the country recently wrote the oil cartel requesting additional barrels, arguing that its baseline of 1.8 million needed to be updated since it was picked at a time the country was pumping very low liquids due to the Niger Delta crisis.

OPEC noted that Nigeria’s non-oil economic activities grew despite the lingering effects of the current COVID-19 wave, adding that labour market pressure continued to be a concern.

It noted that recently released National Bureau of Statistics (NBS) data indicated that the unemployment rate increased to 33.30 per cent in fourth quarter of 2020.

Similarly, OPEC left its forecast for global oil demand growth unchanged for next year, but revised down its projection for this year on lower-than-expected consumption in January-September.

“The main oil demand assumption remains as highlighted last month, with healthy economic momentum in the main consuming countries and better Covid-19 management,” it said.

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