OPEC increases Nigeria's production limit as oil prices decline

OPEC increases Nigeria's production limit as oil prices decline

As Brent, the international standard for crude, fell in price on Wednesday, the Organization of Petroleum Exporting Countries increased Nigeria's crude oil production cap for September 2022 to 1.83 million barrels per day. According to data acquired from OPEC, the 13-member group slightly boosted Nigeria's oil production quota from 1.

826 million barrels per day in August to 1.83 million barrels per day in September. As of 5.10 p.m. Nigerian time, Brent had dropped by 2.36 percent, or $2.37, to close at $98.17 per barrel, according to industry figures seen in Abuja. Additionally, it was noted that the price of the OPEC basket of crude oil grades fell, losing $1.

94 or 1.82 percent, to settle at $104.86 per barrel at 5.13 p.m. Due to numerous industry worries, including the Russian war in Ukraine, oil prices have been above $100/barrel for months. Nigeria, however, has not reaped many benefits from the price increase as a result of its ongoing failure to achieve the OPEC-approved monthly oil output quota.

According to data released from OPEC, Nigeria may only produce 1.158 million barrels per day (mbpd) of oil in June 2022, despite having a 1.

772 million barrels per day (mbpd) OPEC quota. However, the nation's production in June 2022 was 134 million barrels per day higher than it was in May 2022, the month before. The organization observed in its report on the conference that the meeting "noted that the highly limited availability of extra capacity mandates utilising it with great caution in response to serious supply disruptions.

" "The meeting noted that persistent underinvestment in the oil sector has reduced excess capabilities along the value chain (upstream/midstream/downstream)," the statement continued.

"It highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-OPEC member countries, some OPEC member countries, and participating non-OPEC oil producing countries," the report stated.

The oil cartel added that, thanks to some participating countries' voluntary contributions, Declaration of Cooperation conformity has been averaging 130% since May 2020. The participating countries came to some conclusions while highlighting the relevance and significance of preserving consensus as crucial to the cohesion of OPEC and participating non-OPEC oil producing countries and in light of the most recent oil market conditions.

Reaffirming the decision made at the 10th OPEC and non-OPEC Ministerial Meeting on April 12, 2020, they also decided to confirm the decisions made at subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on July 18, 2021.

Thu, Aug 2022     5

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