FOR the first time in five months, Nigeria’s crude oil production rose above 1.3 million barrels per day (bpd) in July, according to Organisation of Petroleum Exporting Countries (OPEC) monthly oil market reports.

The report released on Monday, August 12, revealed that Nigeria’s crude oil production rose slightly to 1.307 million bpd in July.

It means Nigeria added 30 thousand bpd to its production in July compared to the production figure of 1.276 million bpd in June.

The ICIR reports that Nigeria’s crude oil production figure has trended below 1.3 million bpd since February.

In February, its crude oil production stood at 1.32 million bpd, it dropped to 1.23 million bpd in March, increased to 1.28 million bpd in April, declined to 1.25 million in May, rose to 1.28 million bpd in June, and up above to 1.307 million bpd in July.

Since the beginning of the year, Nigeria’s crude oil production highest in January at 1.43 million bpd has failed to meet the OPEC quota of 1.5 million bpd and is far from reaching the country’s 2024 budgetary production benchmark of 1.78 million bpd.

According to OPEC, the data on the country’s crude oil production provided above is based on direct communication with the Nigerian authorities.

In the review month, Nigeria maintained its position as Africa’s largest oil producer as Libya, Algeria, and other countries came behind.

Nigeria’s failure to meet the OPEC quota affects the proceeds from the country’s crude oil production expected to boost its foreign reserves and improve liquidity in its foreign exchange market.

Its failure also to meet its budgetary benchmark makes it impossible to execute projects and creates revenue shortfalls for budgetary provisions, leading to the budget deficit the country has experienced over the years.

The Nigerian National Petroleum Company Limited (NNPCL) believes that the country can conveniently produce two million barrels of crude oil per day, but that the major impediment to achieving it lies in the inability of players in the industry to act promptly.

The state-owned oil company has continuously blamed the inability to meet production quota on pipeline vandalism, militancy, and insecurity in the country.

OPEC cuts oil demand growth forecast

On Monday OPEC stated that it would cut its forecast for global oil demand growth in 2024 citing softer expectations for China, and the pace of the world’s transition to cleaner fuels.

The reduction highlights the dilemma faced by the wider OPEC+ group in raising production from October.

This will be the first cut in OPEC’s 2024 forecast since it was made in July 2023 and comes after mounting signs that demand in China has lagged expectations due to slumping diesel consumption.

In the monthly report, the OPEC said world oil demand would rise by 2.11 million bpd in 2024, down from growth of 2.25 million bpd expected last month.

“This slight revision reflects actual data received for the first quarter of 2024 and in some cases for the second quarter, as well as softening expectations for China’s oil demand growth in 2024,” OPEC said in the report.

OPEC also cut next year’s demand growth estimate to 1.78 million bpd from 1.85 million bpd previously, also at the top end of what the industry expects.