Nigeria’s crude oil output rises despite fall in global oil prices to $39
BRENT crude, Nigeria’s oil benchmark remained at below the $40 per barrel mark on Tuesday, following a drop in demand as the Organisation of the Petroleum Exporting Countries, OPEC, continues to reduce its demand outlook.
Nigeria’s crude oil production rose slightly to 1.36 million barrels per day in August from 1.35 million barrels per day in July, according to data from OPEC.
The global oil body stated that crude oil production of the 13-member cartel increased by 760,000 barrels per day to an average of 24.05 million barrels per day in August.
“Crude oil output increased mainly in Saudi Arabia, UAE, Kuwait, Algeria and Angola, while production decreased primarily in Iraq,” in its latest report.
Brent’s crude prices fell by $0.36 to $39.47 per barrel which is almost by 15 per cent so far this month.
OPEC and its allies, also known as OPEC+, agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis.
They decided to cut supply by a record 9.7 million barrels per day for May and June but the deal was extended in July by one month.
The cuts were later scaled back to 7.7 million barrels per day from August through the end of the year.
On Tuesday, the International Energy Agency, IEA, announced that global crude oil growth was likely to decline further considering the resurging cases of COVID-19 across the world.
“The outlook appears even more fragile … the path ahead is treacherous amid surging COVID-19 cases in many parts of the world,” its monthly report for August read.
The Paris-based energy watchdog reviewed its forecast for global oil demand in 2020 by 200,000 barrels per day and noted that a draw on abundant oil stocks in June after three months of build-ups had faltered in July.
A dip in demand caused by a continuing rise in cases or the second wave would present “the most likely shock that the oil market needs to be considering in the next 12 to 24 months,” it said.