May 22, 2024
How Nigeria’s oil output drops by 23.1% to 1.3 mb/d
AFRICA: Algeria, Libya, Nigeria emerge top three in oil, gas activities
– By Alison_Godswill

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How Nigeria’s oil output drops by 23.1% to 1.3 mb/d

By Eyo Nsima

NIGERIA’s oil output dropped to 1.372 million barrels per day, mb/d in April 2021 from 1.793 mb/d in the corresponding period of 2020, indicating a fall of 23.1 percent.

In its May 2021 report released Tuesday, the Organisation of Petroleum Exporting Countries, OPEC disclosed that the output, excluding Condensate showed of 7 percent compared to 1.429 mb/d recorded in March 2021, based on data obtained from direct sources.

However, this would not impact the nation’s 2021 budget, which was benchmarked on $57 per barrel and 1.8 mb/d output as the nation still produces between 300,000 – 400,000 barrels of Condensate daily.

The organization further, stated: “Stimulus measures in the US and accelerating recovery in Asian economies are expected to continue supporting the global economic growth forecast for 2021, now revised up by 0.1 pp to reach 5.5% y-o-y. This comes after a 3.5% y-o-y contraction estimated for the global economy in 2020.

“However, global economic growth for 2021 remains clouded by uncertainties including, but not limited to, the spread of COVID-19 variants and the speed of the global vaccine rollout. In addition, sovereign debt levels in many regions, inflationary pressures, and central bank responses are key factors to monitor. After a contraction of 3.5% in 2020, US economic growth in 2021 is now expected to reach 6.2%. The economic growth forecast for the Euro-zone in 2021 is lowered to stand at 4.2%, following a contraction of 6.8% last year. Similarly, Japan’s economic growth forecast is lowered to 3.0% for 2021, following a contraction of 4.9% in 2020.

“After growth of 2.3% in 2020, China’s economic growth forecast in 2021 is revised up to 8.5%. Given the ongoing COVID-19 related challenges, India’s 2021 economic growth forecast is revised slightly down to 9.7%, compared to a contraction of 7.0% in 2020. Brazil’s growth forecast for 2021 remains unchanged at 3.0%, after a contraction of 4.1% in 2020. Russia’s economic growth forecast for 2021 remains at 3.0%, after contracting by 3.1% in 2020.

“World oil demand is assumed to have dropped by 9.5 mb/d in 2020, unchanged from last month’s assessment, now estimated to have reached 90.5 mb/d for the year. By 2021, world oil demand is expected to increase by 6.0 mb/d, unchanged from last month’s estimate, to an average of 96.5 mb/d. Slower than anticipated demand in OECD Americas during 1Q21, together with the resurgence of COVID-19 cases in India and Brazil, caused the 1H21 oil demand data to be revised downwards.”

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