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Nigeria’s Crude Oil Output Shrinks To 1.32 Million Barrels Daily

Nigeria's Crude Oil Output Shrinks To 1.32 Million Barrels Daily

Nigeria’s crude oil output slumped to 1.32 million barrels per day in November, following the agreement reached by OPEC and its allies to reduce their outputs, in the wake of the commodity’s price decline, which was orchestrated by the COVID-19 pandemic lockdown.

According to the latest data released by OPEC midweek, Nigeria’s crude oil output declined from 1.34 million bpd in October, based on direct communication.

According to secondary sources, total OPEC crude oil production averaged 25.11 million bpd in November, up by 0.71 million bpd in October.

READ ALSO: Oil Price Appreciates As EIA Declares Inventory Decline

“Crude oil output increased mainly in Libya and UAE, while production decreased primarily in Iraq,” the group said in its Monthly Oil Report for November.

OPEC and its allies, known as OPEC+, reached a deal in April 2020 to reduce output in order to restore a balance that will see the price of the product appreciate in the face of overwhelming descent.

Both parties agreed to cut supply by a record 9.7 million bpd for the months of May and June, the agreement was extended in July by one month.

Countries that failed to comply 100 percent with their quota of the production cut in May and June, Nigeria included, were required to do so between the months of July and September to make up for their output cut shortfall.

The OPEC+ cuts of 9.7 million bpd were later reduced to 7.7 million bpd from August through the end of 2020.

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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