According to information released by the Organisation of Petroleum Exporting Countries (OPEC) on Thursday, Nigeria’s crude oil output decreased by 2.3 million barrels in July 2022 compared to June.
According to OPEC’s most recent Monthly Oil Market Report for August 2022, direct communication data on crude oil production showed that Nigeria’s output decreased by an average of 74,000 barrels per day in July.
This suggests that the nation lost around 2.3 million barrels of crude oil throughout July’s 31 days. The organization added that during the month under examination, the average price of Brent crude, the world’s standard for oil, was $105.12 per barrel.
Nigeria’s oil revenues decreased by around $241.1 million, or N101.13 billion, in July of this year as a result of the loss of 2.3 million barrels (at the official exchange rate of N419.37/$).
According to OPEC data, Nigeria produced 1.158 million barrels per day of oil in June 2022, but this number fell to 1.084 million barrels per day in July
1.024 million barrels per day were produced in the nation in May of this year, according to OPEC data issued on Thursday. Crude oil theft in the Niger Delta has repeatedly been blamed by the Federal Government, industry professionals, and operators as the main cause of Nigeria’s low output and ongoing failure to meet the monthly oil production target set by OPEC.
The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, blamed the challenges in the oil sector on the high level of insecurity across the country.
This, he said, had continued to discourage investors in the sector, leading to lower production of crude oil and lower earnings for Nigeria despite the increased cost of crude.
He said, “Investors in the oil and gas sector continue to lament the challenges posed by insecurity, oil theft, unstable policies and inappropriate fiscal regimes.
“The downstream sector has continued to be weighed down by the pricing regimes and the regulatory environments which have continued to dim the growth prospects in the sector.”
Meanwhile, OPEC stated that crude oil prices dipped in July, as against their costs in June, adding that crude in OPEC Reference Basket fell by $9.17 or 7.8 per cent month-on-month in July to average $108.55/barrel.
“Oil futures prices remained highly volatile in July, amid a sharp drop in liquidity. The ICE Brent front month declined $12.38 or 10.5 per cent in July to average $105.12/barrel and NYMEX WTI declined by $14.96 or 13.1 per cent to average $99.38/barrel,” the global oil cartel stated.