Nigeria’s crude oil production falls by 90,000 BPD in August despite OPEC increase

William Ukpe who is a reporter from Nairametrics stated that the disclosed Bloomberg published on 2^nd September 2021 revealed crude oil export data for the month of August.

It was reported that Nigeria’s crude oil production for the month of August fell by as much as 90,000 barrels a day to a five-year low of 1.43 million a day, despite the Organization of Petroleum Exporting Countries lifting output by 290,000 barrels a day.

  The group was pumping around 10% less than its overall quota because of “deteriorating production capacity and technical disruptions” in several members, particularly Angola and Nigeria. According to the report, OPEC’s 13 members produced 27.11 million barrels per day on average in August. Saudi Arabia boosted production by 200,000 barrels per day to 9.63 million barrels per day, while Iraq increased production by 110,000 barrels per day to 4.08 million barrels per day.

Nigerian production fell by 90,000 barrels per day in August, to a five-year low of 1.43 million barrels per day, according to the report.  OPEC members agreed this week to continue lifting production towards pre-pandemic levels. OPEC agreed to increase oil output by an initial 400,000 barrels per day. The decision increases Nigeria’s oil output from about 1.4 million barrel per day to 1.8 million barrels per day by April 2022.

This development has an adverse effect on the income earned from crude oil in Nigeria, as the drop in barrels per day signals to the loss in revenue. Possibility of scarcity of Products on the retail market is also a negative effect that might occur if Production fall isn’t properly handled, prices of Petroleum Products (AGO & MGO) will likely fall into a volatile period as the need to balance local consumption and foreign exports will take forefront.