OPEC’s monthly oil market report (MOMR) states that in February, Nigeria’s crude oil production slid to 1.32 million barrels per day from 1.42 million, marking a 104,000 barrels per day decline.
This figure was based on data directly communicated from Nigeria to OPEC’s authorities. Nevertheless, secondary sources indicate Nigeria’s daily crude oil production for February at 1.47 million barrels, reflecting a 47,000 barrels per day increase.
African Production Comparison
Despite the monthly drop, Nigeria maintains its status as Africa’s leading oil producer among OPEC’s continental members. Libya ranks second with 1.17 million barrels per day, followed by Algeria at 906,000 barrels daily.
Global Production Outlook
Non-OPEC producers are expected to witness a 1.1 million barrels per day production increase in 2024. OPEC countries are expected to grow by 64,000 barrels daily, averaging approximately 5.5 million barrels for the year.
OPEC’s oil production for February surged by 203,000 barrels daily, totaling around 26.5 million barrels daily for the month, as per secondary sources. Despite pledges for production cuts, Saudi Arabia raised its output by approximately 55,000 barrels daily, maintaining its position as the world’s top oil producer at 9.01 million barrels daily.
Oil Price Movement
In February, oil prices experienced an uptick, with OPEC’s reference basket increasing by $1.19 to $81.23/barrel. Brent crude rose by 3.2% to average around $81.72/barrel, while NYMEX WTI futures contract surged by $2.75 to average $76.61/barrel.
Insights and Implications
This marks the second consecutive month Nigeria fell short of its targeted crude oil production benchmark for 2024, impacting its revenue generation and ability to meet OPEC quotas. President Tinubu’s recent executive orders aim to revamp Nigeria’s oil industry, streamlining contract cycles and offering financial incentives for deepwater investments.
