The Organisation of Petroleum Exporting Countries (OPEC) has reported that Nigeria’s crude oil production increased to 1.307 million barrels per day (bpd) in July. This marks a rise of 30,000 bpd from June’s production level of 1.276 million bpd. The data is based on direct communication with Nigerian authorities.
Despite this increase, Nigeria continues to fall short of its OPEC production quota of 1.5 million bpd. The country remains Africa’s largest oil producer, with Libya trailing behind at 1.175 million bpd in July. However, secondary sources indicated that Nigeria’s average daily production for June was higher, at 1.386 million bpd, which is a 16,000 bpd increase from May.
OPEC’s report also showed that average crude oil prices rose by 2.5 per cent month-on-month in July, reaching $83.3 per barrel, driven by strong market fundamentals. Year-on-year, prices increased by 5.4 per cent. Despite these gains, global macroeconomic uncertainties limit further price increases.
The rise in production comes amid ongoing challenges in the oil sector, including insecurity and low investment. The Nigerian government has faced criticism for its inability to meet production targets, which hampers revenue generation efforts. President Bola Tinubu’s administration pledged to ramp up production to two million bpd by the end of 2024, but achieving this goal remains uncertain. The exit of international oil companies and unresolved issues regarding oil asset transfers is further hindering progress.
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