By Adedapo Adesanya
Nigeria has reclaimed its position as the top crude oil-producing country in Africa a month after it was snatched by Libya, the Organisation of the Petroleum Exporting Countries (OPEC) has confirmed.
In its Oil Market Report for December, the oil cartel said Nigeria produced an average of 1.27 million barrels per day in November, 47,000 barrels per day higher than the 1.228 million barrels per day it produced on average in the month of October 2021.
Libya, which clinched the top spot in Africa in October with 1.24 million barrels per day, declined to 1.211 million barrels per day in November.
“According to secondary sources, total OPEC-13 crude oil production averaged 27.72 mb/d in November 2021, higher by 0.29 mb/d 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 economy was hindered by the elevated inflationary and labour market pressures.
According to the report, the improvement in oil prices still supported the economic recovery.
The inflation rate, the report showed, eased to 15.99 per cent in October 2021, from 16.63 per cent in September marking 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 per cent following a 1.15 per cent rise in the previous month.
“The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index reflected a solid expansion in business conditions despite the ongoing overall prices increase as it rose to a four-month high of 55 in November, up from 54.1 per cent in October,” it added.
In terms of its forecast, OPEC increased its forecast for global oil demand in the first quarter of 2022, as some of this year’s recovery is delayed by Omicron but the overall risk from the new virus strain remains limited.
The cartel boosted estimates for consumption in the period by 1.1 million barrels a day, equivalent to annual world consumption growth in a typical year before the pandemic, according to a monthly report from the group’s research department.
“The impact of the new Omicron variant is projected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges,” the report said.
The revision means that OPEC and its allies won’t create as big a surplus when they proceed with plans to continue reviving oil production in January.
The decision to add barrels, taken earlier this month, surprised traders because markets remain so fragile. It was widely interpreted as a gesture of political goodwill from Saudi Arabia to the United States.
Dipo Olowookere