Nigeria’s crude oil production jumped to 1.4m barrels in December

AFRICAN BUSINESS AND ECONOMYJanuary 20, 2024 at 2:53 PM UTC

TLDR

Nigeria's daily crude oil production rose to 1.418 million barrels in December, a 100 tb/d increase from November.
OPEC's monthly report highlights a collective rise of 73,000 barrels in crude oil production among member nations.
Nigeria saw a significant increase in production, with 85,000 barrels per day, reaching 1.335 million barrels per day.

In December, Nigeria's daily crude oil production averaged 1.418 million barrels, reflecting a 100 tb/d increase from the November figure of 1.31 million barrels. These findings are derived from OPEC's monthly oil market report for December, which highlights a month-on-month collective rise of 73,000 barrels in crude oil production among the cartel's member nations.

The upswing in the group's overall oil production can be attributed to heightened output in Iraq and Nigeria. Conversely, countries such as Kuwait, Saudi Arabia, and Iran witnessed a reduction in their daily production levels, as outlined in the report.

Collectively, the members of the cartel produced 26.7 million barrels of crude oil per day, indicating a rise of 73,000 barrels compared to the 26.62 million barrels reported in November. Nigeria specifically experienced an increase in crude oil production by 85,000 barrels per day, escalating from 1.25 million barrels per day to 1.335 million barrels per day.

Key Takeaways

OPEC, primarily led by Saudi Arabia, has endeavored to curtail the supply of crude oil in the global market as a strategy to bolster prices. In December, OPEC implemented a reduction in the production quota assigned to Nigeria and other African members, notably Angola. Historically, these countries have struggled to meet their production quotas, with Nigeria consistently averaging production at 1.3 million barrels per day, significantly below OPEC's production quota of 1.7 million barrels per day. Nigeria's crude oil production has faced challenges in recent years, marked by divestment from major oil companies, incidents of crude oil theft, and vandalism in the Niger Delta region. These factors have contributed to a decline in the country's oil output.

OPEC

Nigeria

Oil Production