Nigeria records biggest oil production increase in OPEC

Nigeria, Africa’s top oil producer, recorded the biggest increase in crude oil production last month in the Organisation of the Petroleum Exporting Countries.

OPEC, in its monthly oil market report for March, said the country’s oil production rose by 63,000 barrels to 1.42 million barrels per day in February, based on direct communication.

Nigeria produced 1.49 million b/d in February, up by 161,000 barrels from 1.33 million b/d in January, according to secondary sources.

According to secondary sources, OPEC’s total crude oil production averaged 24.85 million b/d in February 2021, down by 0.65 million b/d month-on-month.

“Crude oil output increased mainly in Nigeria, Iraq, Iran IR, Venezuela and Libya, while production decreased primarily in Saudi Arabia and Angola,” the 13-member group said.

The report noted that as the COVID-19 pandemic had a major impact on the oil market balance, OPEC, together with its non-OPEC partners in the Declaration of Cooperation, took historic action to help stabilise the oil market.

It said, “This proactive stance turned out to be a very important element in supporting global economic growth, after an estimated drop in oil demand of 9.6 million b/d in 2020.

“Oil demand is forecast to recover in 2021, growing by 5.9 million b/d. However, this year’s demand growth will not be able to compensate for the major shortfall from 2020, as mobility is forecast to remain impaired throughout 2021.”

According to the group, non-OPEC supply is expected to have declined by 2.6 million b/d in 2020, while growth of 0.95 mb/d is anticipated for 2021.

“However, as the impacts of COVID-19-related developments remain uncertain, continued responsible global policy action from all market participants, including the efforts undertaken by OPEC and the participating non-OPEC producers of the DoC, will continue to be crucial over the coming months to return markets to more stable conditions,” it added.