Bloomberg Report How Nigeria Contributed to OPEC Even After Angola Exit

Reports have shown that the Organisation of Petroleum Exporting Countries (OPEC) has indeed maintained steady crude oil production in December 2023, producing 28.05 million barrels per day (bpd).

The report was disclosed by a Bloomberg survey as it indicated that Nigeria contributed an additional 50,000 bpd, augmenting the output.

OPEC has insisted on production limitations, as observed in various countries such as the United Arab Emirates and Angola, which curtail their output. However, Nigeria is said to have contributed to some percentage, assisting OPEC to reach an average of 28.05 million bpd in December.

The report reads,

• 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.

The recent data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reveals that Nigeria’s daily production stood at 1.25 million barrels.

However, following OPEC output for Nigeria, the country is expected to produce 1.5 million bpd in 2024, but the country's oil output is yet to fit in. The federal government said that the country may potentially reach 2 million bpd this year.

As per Bloomberg, current expectations anticipate a reduction in output this month as the OPEC+ coalition implements additional cuts of around 900,000 barrels per day. This measure aims to prevent a potential surplus and protect declining crude prices, LEADERSHIP reports.

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The UAE has agreed that it will decrease its oil production by 163,000 barrels per day, while Iraq revealed its plan to reduce an additional 220,000 barrels per day for Q1 2024.

Last year, Angola announced that it was going to withdraw from OPEC in December following the refusal from OPEC leaders over increased oil production. However, it was revealed that Angola's output in December, consistent with the level it had rejected, reflected years of underinvestment.

Also, countries like Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Kazakhstan, and Algeria aim to gradually increase production, contingent on the performance of the oil market.

OPEC+ aims at cutting oil production following the decline in oil prices from $98 in September last year. Growing concerns are mounting over global economy in 2024, as experts have predicted that it will decline, leading to an anticipation of surplus oil availability.