Nigeria Rises To Become Second Largest Crude Oil Producer In Africa – OPEC

Nigeria became the second largest crude oil producer in Africa in August 2023, according to the report of the Organisation of Petroleum Exporting Countries. Libya maintained the largest crude oil supplier….CONTINUE READING

In July 2023, Nigeria was the third largest oil producer in Africa as its oil production was 1.081 million barrels per day (bpd), while Libya produced 1.173mbpd, and Angola produced 1.149mbpd.

However, according to OPEC’s Monthly Oil Market Report for August published on Tuesday, using direct communication, Libya increased its oil production by 18,000bd to record 1.192mbpd in August as against 1.173mbpd in July.

Nigeria’s oil supply increased by 100,000bpd to hit 1.18mbpd in August as against 1,081mbpd in July. However, Nigeria had yet to meet its OPEC quota of 1.74mbpd.

Angola came third with 1.129mbpd in August, as against 1.149mbpd in July, a reduction of 20,000bd.

Algeria supplied 939,000bd in August from 955 in July, showing a decrease of 16,000bd.

Saudi Arabia’s production in August was 8.918mbpd from 9,013 mbpd in July a decrease of 95,000bd. Iraq supplied 4.073mbpd in August from 4.094mbpd in July, which showed a decrease of 21,000bd.

United Arab Emirates (UAE) produced 2.896mbpd in August, from 2.894mbpd in July, an increase of 2,000bd while Kuwait’s production in August was 2.548mbpd and also 2.548mbpd in July.

“According to secondary sources, total OPEC-13 crude oil production averaged 27.45 mb/d in August 2023, higher by 113 tb/d m-o-m. Crude oil output increased mainly in IR Iran, Nigeria and Iraq, while production in Saudi Arabia, Angola and Venezuela decreased,” said the OPEC report

Using secondary sources, Nigeria’s oil supply in August surpassed that of Lybia. However, Direct Communication is more acceptable for oil supply ranking of countries.

Using secondary sources, Nigeria’s crude supply increased by 98,000bd from 1.171mbpd in July to 1.269mbpd in August while that of Libya rose from 1,126mbpd in July to 1.154mbpd in August, indicating an increase of 28,000bpd.

Angola produced 1.175mbpd in July but 1.115mbpd in August, a decrease of 60,000bd. Algeria supplied 959,000bd in July but 933,000 in August, a decline of 26,000bd. Saudi Arabia’s production in August was 8.967mbpd from 9.055mbpd in July a decrease of 88,000bd. Iran’s production was 2.857mbpd in July and 3.000mbpd in August, an increase of 143,000bd while Iraq produced 4.239mbpd in July and 4.277mbpd in August, an increase of 38,000bd.

Total OPEC’s supply in July was 27,336, while it was 27.449mbpd in August an increase of 113,000bd.

Giving insight of the world oil supply, the report stated that preliminary data indicated that global liquids production in August remained broadly unchanged averaging 100.7mb/d compared with the previous month. It added that the share of OPEC crude oil in total global production in August, increased by 0.1 pp to stand at 27.2% compared with the previous month.

OPEC said, “After Nigeria’s economy grew by 2.4% y-o-y in 1Q23, growth stood at 2.6% y-o-y in 2Q23. Economic performance in the non-oil sector showed a significant rebound, with noticeable increases in services, manufacturing, and agricultural output during 2Q23. High inflation continues to burden the economy.

“Inflation data for July shows ongoing acceleration, with an annual rate of 24.1% y-o-y, following 22.8% y-o-y in June and 22.4% in May. Food inflation continued rising, reaching 27% y-o-y in July, after 25.3% y-o-y in June, and 24.8% y-o-y in May. In response to the concern about food insecurity, the President declared a state of emergency.

“The government is making efforts to tackle Nigeria’s cost-of-living crisis and the escalating inflation. In this regard, the government unveiled a stimulus package of 500 billion Naira to finance mass transit buses and provide loans to farmers and small businesses.

“In the meantime and to lower inflation, the Central Bank of Nigeria lifted the key policy rate by 25 pp to 18.75% in July….CONTINUE READING