THE Organization of Petroleum Exporting Countries, OPEC, and its allies (OPEC+) have increased Nigeria’s crude oil output quota to 1.830 million barrels per day, mb/d, taking effect in September 2022. The August, 2022 quota is 1.826 mb/d.
The decision, taken at the 31st OPEC and non-OPEC Ministerial Meeting, held via video conference, monitored by Vanguard, yesterday, was targeted at achieving stability in the global market as quota for several other oil producing countries were also reviewed upwards.
A closer look at the September 2022 Required Production showed that amongst African producers, Nigeria’s 1.830 mb/d was the highest, while Sudan’s 75,000 bp/d was the lowest.
Meanwhile, the price of Bonny Light returned to $100 per barrel, after a brief drop below the mark.
But it is doubtful if Nigeria, currently producing about 1.4 mb/d, including condensate would meet the new quota after failing to meet the lower quota for several months in a row.
The Nigerian National Petroleum Corporation, NNPC, has attributed the failures to increased pipeline vandalism, oil theft and illegal refining in the Niger Delta.
However, in a statement obtained by The Truthonline, OPEC, stated: “The Meeting noted the dynamic and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions.”