In December 2023, the Organization of Petroleum Exporting Countries (OPEC) sustained a consistent crude oil production, maintaining an average of 28.05 million barrels per day (bpd), as reported by a Bloomberg survey. Nigeria played a pivotal role by contributing an additional 50,000 bpd, counteracting production limitations observed in countries like the United Arab Emirates and Angola.

The Bloomberg report highlighted, “Supply declines from these two members were tempered by increases elsewhere. Nigeria bolstered supplies by 50,000 barrels a day to 1.49 million a day in December, in line with a revised quota that it successfully negotiated for this year.”

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed the country’s daily oil production at 1.25 million barrels. However, OPEC projects Nigeria’s production to reach 1.5 million bpd in 2024, with the federal government expressing optimism that the country could potentially achieve 2 million bpd this year.

Despite expectations of a reduction in output this month, OPEC+ is implementing additional cuts of approximately 900,000 barrels per day to prevent a potential surplus and safeguard declining crude prices. Saudi Arabia is leading this reduction, maintaining its current cut, while the UAE and Iraq plan significant reductions.

In a notable development, Angola withdrew from OPEC in December, citing its rejection of a reduced limit imposed by OPEC’s leaders. However, its December output remained consistent with the rejected limit, reflecting years of underinvestment.

Looking ahead, OPEC+ member countries, including Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Kazakhstan, and Algeria, aim to gradually increase production based on the performance of the oil market. The move to reduce oil production is prompted by concerns about declining prices, which dropped from almost $98 in late September. There is also growing apprehension about a potential global economic slowdown in 2024, contributing to the anticipation of surplus oil availability.

Leave a Reply

Your email address will not be published. Required fields are marked *