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Nigeria’s daily oil production falls below 1.2 million barrels

Crude oil production in Nigeria fell below 1.2 million barrels per day in December 2021 from 1.28 million bpd in the previous month, according to the Organization of the Petroleum Exporting Countries.

The country produced 1.197 million bpd last month, based on direct communication, OPEC said in its latest monthly report.

Data obtained from the Nigerian Upstream Petroleum Resources Commission show that the highest volume of crude oil produced last year was about 1.43 million bpd (in March), compared to the projected production level of 1.86 million bpd in the 2021 budget.

According to secondary sources, OPEC’s total crude oil production averaged 27.88 million bpd in December, higher by 170,000 bpd month-on-month.

“Crude oil output increased mainly in Angola, Saudi Arabia, Iraq and the UAE, while production in Libya and Nigeria declined,” the 13-member group said.

The report said the share of OPEC crude oil in total global production remains unchanged at 28.3 per cent in December compared with the previous month.

Brent, the crude against which Nigeria’s oil is priced, traded at $88.31/barrel on Wednesday, rising by $0.80 or 0.91 per cent around 10.41am Nigerian time, as against its price the preceding day.

The upturn in crude oil prices came as OPEC projected a global economic recovery this year in its monthly oil market report for January 2022.

It was also observed that the prices of other crude oil grades rose marginally on Wednesday, as US West Texas Intermediate increased by 1.22 per cent or $1.04 to $86.45/barrel.

Crude oil in the OPEC Basket moved up to $86.54/barrel, rising by $1.08 or 1.26 per cent on Wednesday.

Commenting on oil production and its global impact, OPEC said in its latest report that demand for the commodity would increase this year, going by the projected recovery of the world’s economy.

It said, “In 2022, the forecast for world oil demand growth also remains unchanged at 4.2 million barrels per day with total global consumption at 100.8mbpd.

“While the impact of the Omicron (COVID-19) variant is projected to be mild and short-lived, uncertainties remain regarding new variants and renewed mobility restrictions, amid an otherwise steady global economic recovery.”

For crude oil price movements in December 2021, the organisation said both crude oil spot and futures prices fell for the second consecutive month in December.

It said major physical crude benchmarks decreased about nine per cent month-on-month, on growing concerns that the rapid spread of the Omicron COVID-19 variant might have an impact on the global economy and oil demand.

It said the OPEC Reference Basket fell $5.99, or 7.5 per cent, to settle at a three-month low of $74.38/barrel.

“Crude oil futures prices extended losses in December, declining on both sides of the Atlantic, with the ICE Brent front-month down $6.05, or 7.5 per cent to average $74.80/barrel and NYMEX WTI declining by $6.96, or 8.8 per cent, to average $71.69/barrel,” the organisation added.

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