OPEC puts Nigeria’s oil output at 1.174 mb/d

By Eyo Nsima

The Organisation of Petroleum Exporting Countries, OPEC, has put Nigeria’s oil output at 1.174 million barrels per day, mb/d.

According to the organization, the oil output produced in December 2020, showed a drop of 25 percent, when compared to 1.570 mb/d produced in the corresponding period of 2019.

The organization, which stated that the figure was based on information sourced from direct sources, maintained that when information obtained from indirect sources are considered, Nigeria produced 1.420 mb/d during the period under review.

However, OPEC, which expressed cautious optimism that the would-be improved demand for oil in the coming months, stated: “World oil demand growth in 2020 was revised marginally higher from last month’s report and is now estimated to have declined by 9.8 mb/d year-on-year (y-o-y) to average 90.0 mb/d in 2020. OECD America, led by the US, was revised lower particularly in 2H20 amid a sluggish recovery in transportation fuels. In the non-OECD region, oil demand growth was revised higher in 2020, mainly reflecting better-than-expected demand in China and India.

“For 2021, global oil demand is forecast to increase by 5.9 mb/d y-o-y to average 95.9 mb/d. The growth forecast was kept unchanged compared to last month’s assessment. In the OECD region, oil consumption is estimated to increase by 2.6 mb/d y-o-y but will still lag pre-pandemic levels. OECD Americas is estimated to increase the most amid a rebound in transportation fuels.”

It also stated: “The forecast for non-OPEC supply in 2021 also remains unchanged, with growth expected at 0.8 mb/d. The upward revision in US supply offset the downward revision in the supply forecast for Russia. Market conditions have improved for US shale as oil prices have moved into a range where output is likely to recover at a higher-than-expected rate in 2H21. As a result, the US liquids supply forecast was revised up by around 0.1 mb/d to average just under 18.0 mb/d.”