Nigeria has regained the top spot among crude oil-producing countries in Africa, despite the Organisation of the Petroleum Exporting Countries (OPEC) saying crude oil spot prices dropped by $1.74, or 2.1 percent, in November 2021 to average $80.37 per barrel.
Fresh data from the OPEC Secretariat in Vienna published in its Oil Market Report for December showed that Nigeria’s crude oil production averaged about 1.27 million barrels per day in November.
The report said that Nigeria’s production figures increased by about 47,000 barrels per day when compared to an average of about 1.228 million barrels per day produced in October 2021.
Libya, which occupied the top spot in Africa in October with about 1.24 MBPD dropped to 1.211 MBPD in November, the report showed.
OPEC secondary sources showed total OPEC-13 crude oil production averaged 27.72 MBPD in November 2021, higher by 0.29 MBPD month-on-month.
”Crude oil output increased mainly in Saudi Arabia, Iraq, and Nigeria, while production in Angola, Libya, and Congo declined,” the report said.
The report said the near-term outlook of Nigeria’s economy was hindered by the elevated inflationary and labour market pressures.
The report said the improvement in crude oil prices still supported the country’s economic recovery, with inflation rate easing to 15.99 percent in October 2021, from 16.63 percent in September, the lowest rate since last December, largely due to a sustained moderation in food prices.
“On a monthly basis, consumer prices increased by 0.98 percent following a 1.15 percent rise in the previous month.
Meanwhile, OPEC says the crude oil spot prices dropped by $1.74, or 2.1 percent, in November 2021 to average $80.37 per barrel amid fears of the impact of the Omicron variant of COVID-19.
“Crude oil spot prices declined in November, amid concerns regarding the emergence of the new Omicron COVID-19 variant, and easing of the energy crunch which had resulted in higher oil demand from the gas-to-oil switching.
“The OPEC Reference Basket (ORB) value dropped by $1.74, or 2.1 percent, in November to average $80.37 per barrel, amid lower prices of almost all medium and heavy sour grades in Asia, Europe, and the Americas.
“The year-to-date ORB value reached $69.45 per barrel, which is $28.71, or 70.4 percent, higher compared with the same period last year of $40.75/b,” the report said.
OPEC, however, noted that world oil demand was unchanged compared to last month’s assessment, showing a growth of 5.7 mb/d in 2021.
The report said the oil demand was adjusted higher in the first half of 2021 better-than-anticipated transportation fuel consumption in Organisation for Economic Cooperation and Development (OECD).
“The fourth quarter 2021 oil demand was adjusted slightly lower, mainly to account for COVID-19 containment measures in Europe and the potential impact of the new Omicron COVID-19 variant.
“The forecast for 2022 is also kept unchanged at 4.2 MBPD. Indeed, some of the recovery previously expected in the fourth quarter of 2021 is now shifted to the first quarter of 2022, followed by a steadier recovery throughout the second half of 2022.
“The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges. This is in addition to a steady economic outlook in both the advanced and emerging economies.” (NAN)
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