- Nigeria Cuts Oil Output by 37,000bpd in October
The Organization of the Petroleum Exporting Countries (OPEC) has said Nigeria’s crude oil production declined by 37,000 barrels per day in the month of October.
According to the cartel, Nigeria’s production fell from 1.84 million barrels per day (mbpd) in September to 1.81 million barrels per day in October.
This was in line with OPEC’s production cuts agreement signed by all its 14 members. Nigeria’s regulatory authorities cut down production from top oil companies.
For instance, Egina, managed and operated by Total, was only allowed to produce 180,000 bpd in October, down from 203,000 produced in August.
OPEC+ had capped Nigeria’s crude production at 1,685mbp but Nigeria consistently pumped 1.84mbpd in recent months to sustain revenue generation and support falling foreign reserves.
Charles Akinbobola, an energy analyst at Lagos based Sofidam Capital, however, said: “Strict adherence to OPEC’s production cut may threaten Nigeria’s oil revenue except we manage to keep oil price above $60.”
Despite OPEC predicting lower demand for 2020, its oil output jumped by 943,000bpd in October to 29.65mbpd. Saudi Arabia, the world’s largest exporter of crude oil, added 1,094bpd into the oil market during the month and currently pumping 9.8mbpd.
Saudi’s crude export dropped by 3 percent from 6.88mbpd in August to 6.67mbpd in September following attacks on its two largest oil plants.
