Nigeria’s Crude Oil Output Rises by 3.4% in August, Reaching 1.35m bpd– OPEC Report
Nigeria’s crude oil production increased by 3.4 per cent in August, reaching an average of 1.352 million barrels per day (bpd), according to the latest report from the Organisation of Petroleum Exporting Countries (OPEC).
This represents an increase of 45,000 bpd from the 1.307 million bpd produced in July, based on direct communication between OPEC and Nigerian authorities.
Secondary sources indicated an even higher figure for August, with Nigeria’s average crude oil production at 1.448 million bpd, a rise of 57,000 bpd compared to the 1.391 million bpd recorded in the previous month.
Despite production challenges in some parts of Africa, Nigeria maintained its position as the continent’s largest oil producer, widening its lead over Libya, which faced shutdowns at major oil fields during August.
OPEC’s report also adjusted its forecast for global oil demand growth in 2024, lowering the estimate to 2.03 million bpd from the previous projection of 2.11 million bpd. For 2025, the global demand growth forecast was reduced to 1.74 million bpd from the earlier estimate of 1.78 million bpd.
In August, oil prices fell across global markets. The OPEC Reference Basket (ORB) dropped by $6.02, or 7.1 per cent, averaging $78.41 per barrel. The ICE Brent front-month contract decreased by $5.00, or 6.0 per cent, to $78.88 per barrel, while the NYMEX WTI front-month contract fell by $5.05, or 6.3 per cent, averaging $75.43 per barrel.
The DME Oman front-month contract also saw a decline, falling by $5.83, or 7.0 per cent, to $77.54 per barrel. The spread between the ICE Brent and NYMEX WTI front-month contracts widened by 5 cents, reaching $3.45 per barrel.
Crude oil supply from non-OPEC+ countries is projected to grow by 1.2 million bpd in 2024, driven primarily by the US, Canada, and Brazil. This forecast remains consistent with OPEC’s previous estimate.
For 2025, the non-OPEC+ liquids supply growth forecast remains unchanged at 1.1 million bpd, with the US, Brazil, Canada, and Norway expected to be the primary contributors to the increase.
Natural gas liquids (NGLs) and non-conventional liquids from countries participating in the Declaration of Cooperation (DoC) are expected to grow by approximately 100,000 bpd, reaching an average of 8.3 million bpd in 2024, followed by an increase of around 60,000 bpd to 8.4 million bpd in 2025.
In August, crude oil production from DoC countries fell by 304,000 bpd compared to the previous month, averaging around 40.66 million bpd according to secondary sources.
OPEC’s report reflects the evolving dynamics of global oil production and demand, with Nigeria’s output increase solidifying its role as Africa’s leading oil producer, while global markets continue to experience shifts in oil prices and supply.