Eko Hot Blog reports that in a recent revelation by the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria experienced a marginal decline in its crude oil production, dropping to 1.42 million barrels per day in January 2024.
OPEC’s Monthly Oil Report for February 2024 highlighted a decrease of 3,000 barrels per day (bpd) or 0.21%, compared to December’s production of 1.422 million bpd, as reported by secondary sources.
The Federal Government had initially projected a daily production of 1.78 million barrels in the 2024 budget, indicating a variance from the actual output.
However, the report mentioned an increase in Nigeria’s oil production from 1.33 million bpd to 1.42 million bpd, sourced directly.
President Bola Tinubu, in the 2024 budget, expressed the nation’s commitment to surpass its current crude oil production levels.
The budget, totaling N28.7 trillion, heavily relies on crude oil proceeds as a major revenue source for the Nigerian government.
OPEC’s report outlined that the surge in crude oil output was notable in the United Arab Emirates, Saudi Arabia, and Venezuela.
It highlighted that total crude production across the 12 OPEC states averaged 26.34 million bpd in January 2024, indicating a decrease of 350,000 bpd.
“According to secondary sources, total OPEC-12 crude oil production averaged 26.34mb/d in January 2024, lower by 350 tb/d, month-on-month. Crude oil output increased mainly in the UAE, Saudi Arabia and Venezuela, while production in Libya, Kuwait, Iraq and Algeria decreased,” the report said.
On world oil supply, it noted that preliminary data indicated a global decrease in liquids production in January, reaching an average of 101.8 million bpd compared to the previous month, with non-OPEC liquids production estimated to have decreased by 0.2 million bpd.
The share of OPEC crude oil in total global production also experienced a slight decrease to 25.9% in January.
“Preliminary estimated production decreases in January were mainly seen in the US and other Eurasia and were partially offset by rises in China, Canada and Brazil.”
According to the report, estimates are based on preliminary data for non-OPEC supply, OPEC natural gas liquids, and non-conventional oil, with assessments for OPEC crude production relying on secondary sources.
In a related context, Nigeria witnessed an increase in crude oil production to 1.418 million bpd in December 2023, as reported in OPEC’s Monthly Oil Market Report for January 2024.
The report indicated a rise of 100,000 bpd from November’s production of 1.319 million bpd, based on secondary sources.
As the nation navigates fluctuations in its oil production, the global and domestic implications continue to shape economic projections and revenue expectations.
These developments underscore the importance of monitoring and adapting to changes in the oil market for sustainable economic planning.
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