According to the Organization of Petroleum Exporting Countries (OPEC) monthly oil market report released on March 11, 2021, the Nigeria’s daily crude oil production has increased by 7.6 percent to 1.4 million barrels per day (bpd) in February.
The report noted that Nigeria produced 1.36 million per barrel in January in 2019 and 2020 the country produced 1.73 million bpd and 1.47 million bpd respectively.
This means Nigeria has recorded the highest increased in crude oil production among other OPEC member countries.
“Crude oil output increased mainly in Nigeria, Iraq, Iran IR, Venezuela and Libya, while production decreased primarily in Saudi Arabia and Angola,” it read.
OPEC, however, said Nigeria produced 1.48 million bpd in February 2021, up by 161,000 barrels from 1.32 million bpd in January, based on secondary sources.
According to secondary sources, OPEC’s total crude oil production averaged 24.84 million bpd in February 2021, down by 2.54 percent month-on-month, compared to 25.49 million bpd in January 2021.
It projected that the meaningful rise in oil prices along with the positive trajectory of COVID-19 vaccines, could brighten the 2021 outlook and lay the groundwork for a medium-term real gross domestic product (GDP) expansion in Nigeria.
Overall, OPEC said the COVID-19 pandemic had a major impact on oil market balance, thus together with non-OPEC partners in the declaration of cooperation (DoC) took historic action to help stabilize the oil market.
“This proactive stance turned out to be a very important element in supporting global economic growth, after an estimated drop in oil demand of 9.6 million barrels per day (mb/d) in 2020.
“Oil demand is forecast to recover in 2021, growing by 5.9 (mb/d). However, this year’s demand growth will not be able to compensate for the major shortfall from 2020, as mobility is forecast to remain impaired throughout 2021.
“Thus, oil-intensive sectors, especially travel and transportation, will remain disproportionately affected, with a larger negative impact on 2020 oil demand and a lower positive contribution to 2021 oil demand, relative to global economic growth.”
Similarly, it expects non-OPEC supply to have declined by 2.6 millions bps in 2020, while growth of 0.95 million bpd is anticipated for 2021.
“However, as the impacts of COVID-19-related developments remain uncertain, continued responsible global policy action from all market participants, including the efforts undertaken by OPEC and the participating non-OPEC producers of the (DoC), will continue to be crucial over the coming months to return markets to more stable conditions.”