OPEC to Cut Nigeria’s Oil Output by 3% in 2019

markets energies crude oil
  • OPEC to Cut Nigeria’s Oil Output by 3% in 2019

The Organisation of Petroleum Exporting Countries, OPEC, is expected to cap Nigerian oil production at 1.685 million barrels per day in the first half of 2019.

OPEC and ten non-OPEC nations called OPEC+ had earlier in the month agreed to lower oil output by 1.2 million bpd starting from January to boost falling oil prices by reducing global supplies.

Nigeria, which was exempted from output cuts in 2017, was asked to join the new deal during the December 7 meeting in Vienna.

According to a report obtained by S&P Global Platts, Nigeria’s production is to be reduced by 3.04 percent or 53,000 barrels from 1.738 million bpd to 1.685 million bpd.

While OPEC’s largest producer, Saudi Arabia, will cut production by 322,000 bpd to 10.311 million bpd.

The report showed that OPEC would cut by 812,000 bpd in total, while non-OPEC would lower production by 383,000 bpd.

Iran, Libya and Venezuela are exempted from the cuts.

However, Dr Ibe Kachikwu, the Minister of State for Petroleum Resources, said Nigeria will struggle to cut production.

“It is very difficult to do that but where we are now, everybody must be seen to contribute. Obviously, the smaller it is, the more amenable we are to participate; the larger it is, the more we will struggle to participate.

“We have got exemption three times understandably. This time round, I think there is a decision that everybody should be seen to chip in.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

Leave a comment

Your email address will not be published.