Economy

Nigeria’s Oil Production Rises by 8% to 1.95 Million bpd

  • Nigeria’s Oil Production Rises by 8% to 1.95 Million bpd

The Organisation of Petroleum Exporting Countries on Friday said Nigeria’s total crude oil production grew by 8 percent to 1.95 million barrels per day in the month of July.

In the monthly report for August, OPEC put Nigeria’s June production at 1.80 million barrels per day.

OPEC, however, produced 29.61 million bpd in July, a decline of 246,000 bpd when compared to June, according to secondary sources.

The group said, “In 2019, oil demand is anticipated to grow by 1.10 million barrels per day year-on-year, a downward revision of about 0.04 million bpd from the previous month’s projection, mainly due to weaker-than-expected oil demand data from OECD Americas, Other Asia and the Middle East in 1H19.

“Total oil demand for the year is now anticipated to reach 99.92 million bpd. For 2020, world oil demand is expected to grow by 1.14 million bpd, in line with last month’s projection, with total world consumption anticipated to average 101.05 million bpd. This forecast is subject to downside risks stemming from uncertainties with regard to global economic development.

“The OECD region is estimated to be in positive territory in 2020 as OECD Americas is projected to show growth, while OECD Europe and OECD Asia Pacific are projected to decline. However, non-OECD countries are forecast to continue to account for most of the growth at 1.05 million bpd. China and Other Asia are anticipated to lead demand growth both in the non-OECD region.”

According to the oil cartel, non-OPEC supply is projected to grow by 1.97 million bpd year-on-year, a 72,000 bpd lower than June’s projection. This the cartel attributed to the surge in oil production in Canada, the increase recorded in Canada in July offset the lower-than-expected oil production in the U.S, Brazil, Thailand, and Norway in the first half of 2019.

It said, “US liquids output in May was up by 53,000 bpd, despite a decline in crude oil production. However, US oil supply growth for 2019 was revised down to 1.87 million bpd, on lower revised historical production data. The US, Brazil, China and the UK are the key countries driving y-o-y growth in 2019, with mainly Mexico and Norway showing declines.”

The group also revised down non-OPEC production by 50,000 bpd from July assessment and now expected to grow by 2.39 million bpd year-on-year for an average of 66.78 million bpd, attributing the reduction to the downward revision of Brazilan crude oil projection.

“The US, Brazil and Norway are forecast to be the main growth drivers, while Mexico, Indonesia and Egypt are expected to see the largest declines. OPEC NGLs production in 2019 and 2020 is expected to grow by 0.07 million bpd and 0.03 million bpd to average 4.84 million bpd and 4.87 million bpd, respectively,” it added.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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