“NIGERIA’S CRUDE OIL OUTPUT PLUMMETS TO 1.25 MILLION BARRELS DAILY”

Babatunji Wusu –

In May, Nigeria experienced a significant drop in crude oil production, hitting a new low of 1.25 million barrels per day, according to the latest report from the Organization of Petroleum Exporting Countries (OPEC).

The report, issued in June, highlighted that Nigeria’s daily average production in May decreased by 2.34% from April’s 1.28 million barrels per day. OPEC gathers production data directly from Nigerian officials, as well as through secondary sources like energy intelligence platforms.

Analysis of the report revealed that production levels were at 1.3 million barrels per day towards the end of 2023 and the beginning of 2024. Despite efforts to combat crude oil theft and pipeline damage by the Nigerian National Petroleum Company Limited (NNPCL), production declined.

Nevertheless, Nigeria maintained its position as Africa’s top oil producer, followed by Libya and Algeria. Libya produced 901,000 barrels per day in May, while Algeria produced 264,000 barrels per day.

Interestingly, data from secondary sources suggested that Nigeria’s crude oil production increased by five percent to 1.41 million barrels per day from the previous month’s 1.35 million barrels per day. However, these figures remained below Nigeria’s quota set by OPEC for 2024, which was 1.5 million barrels per day.

The OPEC report noted: “According to secondary sources, total OPEC-12 crude oil production averaged 26.63 million barrels per day in May 2024, an increase of 29 million barrels per day from the previous month. Crude oil output increased mainly in Nigeria, Gabon, and Equatorial Guinea, while production decreased in Saudi Arabia, Kuwait, Libya, and Congo.”

Additionally, the report highlighted that total non-OPEC crude oil production averaged 14.29 million barrels per day in May 2024, with increases in Mexico’s production offset by decreases in Russia and Kazakhstan.