Nigeria Adds 77,000bpd Crude Oil in October, Remains Below OPEC Target

Image

By Adedapo Adesanya

Nigeria continued to lag in its crude oil production despite increasing its output by 77,000 barrels per day in October, but it wasn’t enough to return the country to the top of the table as Africa’s largest producer.

The country is now in the fourth position behind the trio of Angola, Algeria, and Libya due to its continued inability to meet the Organisation of Petroleum Exporting Countries (OPEC) oil quota.

In the month under review, Algeria drilled 1.060 million barrels per day, Angola produced 1.051 million barrels per day, Libya’s output was 1.163 million barrels per day, while Nigeria’s oil production stood at 1.024 million barrels per day.

Even though Algeria gained a paltry 2,000 barrels per day, it lost 40,000 barrels per day, with Libya gaining 6,000 barrels per day, according to OPEC’s secondary source in its Monthly Oil Market Report (MOMR) published on Monday.

Giving its review of Nigeria’s economic environment, OPEC noted, “Nigeria’s economic outlook has been impacted by the devastating rains and floods that affected 31 of Nigeria’s 36 states and has resulted in a significant loss of land, lives and livelihoods. The latest data suggested that record-high inflation continues to persist.”

“Upward price pressures were mainly caused by supply disruptions amid the widespread flooding and higher import costs. However, considering the broad money-supply growth of 21% y-o-y in August, there is a significant monetary component behind the inflationary spiral,” it added.

The cartel warned, “the inflationary pressures are suppressing consumption spending, which might weigh on the growth of household volume consumption.”

OPEC’s crude oil production dropped by 210,000 barrels per day in the month under review compared to the previous month after the cartel, and the wider OPEC+ group reversed the small output increase in September.

The crude oil production of all 13 OPEC members, including those exempt from the OPEC+ pact – Venezuela, Iran, and Libya – averaged 29.49 million barrels per day in October.

Saudi Arabia, the de facto leader of OPEC and its top producer, saw its production decline by 149,000 barrels per day to an average of 10.838 million barrels per day last month, as OPEC+ decided in early September to reverse a 100,000 barrels per day increase in target oil production, which was only intended for September.

Saudi Arabia’s production dropped the most among OPEC members and was below the targeted production level of 11.004 million barrels per day per the schedule the OPEC+ meeting had adopted. The Kingdom self-reported higher production for October than secondary sources’ estimates, at 10.957 million barrels per day, down by 84,000 barrels per day compared to September.

Production in Angola saw the second-steepest drop in OPEC producers in October, but it wasn’t the result of a conscious reduction since the top African producer has been lagging behind its quota for many months. Angola’s crude oil production fell by 78,000 barrels per day to 1.067 million barrels per day in October, according to OPEC’s secondary sources.

Over the coming months, OPEC’s production is set to decline further after the OPEC+ alliance decided to reduce its collective target by 2 million barrels per day for November.

Although the actual cut is expected to be around half that number, at 1.1 million barrels per day, it still is the biggest cut since the record production reduction announced in April 2020 when oil demand plunged at the start of the COVID-19 pandemic.

Share
Related Stories
Image
26-February-2024

Dollar Crashes to N1,520/$1 at Parallel Market

By Dipo Olowookere The value of the Naira to the US Dollar significantly strengthened in the parallel market on Monday, trading at N1,520/$1 compared with the N1,700/$1 it was traded on Sunday. This development followed steps taken by the Central Bank of Nigeria (CBN) last week to stabilise the currency market and take control of the ecosystem. Recall that over the weekend, the central bank announced plans to increase the minimum capital base of Bureaux De Change (BDC) operators to N2 billion for national operations and N500 million for regional. It was also speculated that the bank may resume the

Image
27-February-2024

Naira Strengthens on US Dollar Across FX Market Segments

By Adedapo Adesanya The Naira appreciated against the US Dollar in the different segments of the foreign exchange (FX) market on Monday, February 26 as respite came to the market after fresh supply eased the mounting pressure on the local currency. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency appreciated against the greenback by 4.9 per cent or N8.66 to close at N1,582.94/$1 versus the N1,665.50/$1 recorded last Friday. The Naira then maintained stability against the Pound Sterling and the Euro in the spot market during the session to remain unchanged at N1,880.81/£1 and N1,609.89/€1, respectively. The

Image
27-February-2024

PHOTOS: Nigerians Join NLC for End Hunger Protest

By Modupe Gbadeyanka Some Nigerians across the country have joined the Nigeria Labour Congress (NLC) to protest against economic hardship under the administration of President Bola Tinubu. The NLC had called for a two-day nationwide protest over the widespread hunger in the country as a result of the removal of fuel subsidies and the unification of the exchange rates. In Lagos, business activities are slow because of the demonstrations across the city, while it is not different in Abuja, Kaduna, Enugu, Anambra, Oyo State and others. The demonstration has been tagged #EndHungerProtest for social media followers to track and here

More Stories
Image
05-June-2021

Worry as Naira Now Trades at N502 Per Dollar

By Adedapo Adesanya Many Nigerians have expressed worry over the fast rate the Naira is depreciating against the Dollar at the foreign exchange (forex) market, especially at the unregulated window. The woes of the domestic currency started a few days ago when the Central Bank of Nigeria (CBN) further devalued the Naira to N410/$1 from N379/$1. The domestic currency, which was then at N480 to N485 per Dollar at the black, has now crossed the N500/$1 region, giving some observers something to worry about. At the parallel market on Friday, the Nigerian currency depreciated by N3 against the American currency

Image
04-April-2018

Global Credit Rates C&I Leasing N7b Series 1 Bonds

By Dipo Olowookere Nigeria-based rating agency, Global Credit Ratings (GCR), has accorded an indicative, public national scale long term rating of A-(NG) to C&I Leasing Plc N7 billion Series 1 Bonds being issued under C&I Leasing Plc N20 billion Debt Issuance Programme with a Stable Outlook. In a statement issued by GCR last Tuesday, the rating was assigned to the notes because C&I Leasing recorded an improved performance based on unaudited management accounts for the year ending December 31, 2017. The firm grew its revenue during the period by 42.8 percent y/y to N22.5 billion, supported by the commencement of

Image
11-April-2022

Alerzo Has Helped Entrepreneurs Run Profitable, Sustainable Businesses—Opaleye

Chief Executive Officer of Alerzo Limited, Mr Adewale Opaleye, has said the innovative e-commerce platform has improved the business fortune of over 80,000 informal retailers across the country. Alerzo is one of the innovative Business-to-Business e-commerce platforms deploying technology to reinvent the distribution value chain in the informal retail sector. While speaking on the impact of e-commerce brands on the sector, Mr Opaleye said “We empower retailers in the informal sector through our ecosystem of digital products, so, they are equipped to run profitable and sustainable businesses. “We’re focused on supplying much-needed products to informal retailers without the usual stress

Image
05-April-2021

Omu Resort Lagos Expands Zoo With Zebras

By Dipo Olowookere The zoo section of Omu Resort in Lagos has been boosted with the arrival of two Zebras, making the facility become one of the few zoos in Africa to have the animal in their collection. The black and white-striped Zebras have now increased the numbers of animals in the zoo section of the resort, giving fun-seekers the opportunity to see more animals. Business Post reports that Omu Resort, located at Bogije, Ibeju Lekki, Lagos State, is well-known for wildlife conservation and captive breeding. It boasts of several wild animals like the lion, hyena, monkey, crocodile, ostrich, amongst

Image
12-June-2023

Algerian President to Meet Putin for Strategic Partnership

By Kestér Kenn Klomegâh Algerian President Abdelmadjid Tebboune would head an extensive ministerial delegation to visit Russia from June 14 through 16 to forge the strategic partnership between the two countries, the Le Jeune Independent news portal reported at the weekend. The report indicated that the president’s delegation expected to attend the St. Petersburg International Economic Forum (SPIEF). The forum will take place on 14–17 June 2023 at the ExpoForum Convention and Exhibition Centre in St. Petersburg, the second-largest city in the Russian Federation. Talks with Russian President Vladimir Putin are scheduled during the visit. The portal said the two

Image
24-August-2022

Brent Hits $100 Again on Possible Supply Cut

By Adedapo Adesanya Brent crude returned to the $100 mark on Tuesday after it rose by $3.74 or 3.9 per cent to sell at $100.22 per barrel as Saudi Arabia floated the idea of output cuts to support prices in the case of returning Iranian crude. Also, the price of the United States West Texas Intermediate (WTI) crude closed higher by $3.38 or 3.7 per cent to trade at $93.74 a barrel. This showed that the Brent settled at its highest price since August 2 and WTI logged its strongest settlement since August 11. The Saudi energy minister, Prince Abdulazziz

Image
06-July-2018

Senate Passes Forensic Accounting Bill

By Dipo Olowookere The Chartered Institute of Forensic and Investigative Auditors in Nigeria Bill and Chartered Institute of Forensic Accountants of Nigeria Bill were yesterday passed by the Senate. This followed consideration of the clause by clause of a report submitted by Chairman of the Committee on Establishment and Public Service, Senator Emmanuel Paulker. The report comprises Bills on Chartered Institute of Forensic and Investigative Auditors in Nigeria; Chartered Institute of Finance and Control in Nigeria; Chartered Institute of Forensic Accountants of Nigeria. Recall that prior to the passage of the Bill about four months ago Professional Accountants and Auditors

Image
25-March-2020

Moody’s Raises Red Flag in Dangote Cement’s Liquidity Level

By Modupe Gbadeyanka Reputable global rating agency, Moody’s Investors Service, has warned that Dangote Cement Plc could be exposed to a refinance risk as a result of its weak liquidity profile. In a statement issued yesterday, Moody’s said the cement firm’s liquidity profile remains weak because it relies on the rollover of short-term debt and commercial paper funding, equal to N106 billion and N137 billion respectively as December 31, 2019. It noted that “combined with the board recommended dividend of N273 billion, which if approved and paid in June 2020, will weaken Dangote Cement’s liquidity and expose the business to

Ad
Ad
Recent Stories
Image
28-February-2024

Dangote Cement Wins Environmental Sustainability Award

By Aduragbemi Omiyale NatureNews has announced Dangote Cement Plc as the winner of the 2023 NatureNews Environmental Sustainability Award at its 3rd anniversary themed Climate Change and Energy Transition in Nigeria. At the Anniversary Lecture and Presentation of the Hero of Environmental Actions for Development (HEAD) held on Tuesday at the Shehu Musa Yar’Adua Centre, Abuja, the news platform said Dangote Cement was nominated for the category following a thorough screening by eminent professionals. The Publisher and Editor-in-Chief of NatureNews, Mr Aliyu Akoshile, disclosed that during the screening, it was discovered that the cement maker had deployed cutting-edge technology to

Image
28-February-2024

Nigeria’s Stock Market Stands Still to Honour Ogunbanjo’s Legacy

By Aduragbemi Omiyale The stock market in Nigeria stood still for the late former chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbanjo, on Tuesday, February 27, 2024. The day was set aside to pay homage to the enduring legacy of the esteemed luminary, who died in a helicopter crash in the United States a few weeks ago along with the group chief executive of Access Holdings, Mr Herbert Wigwe, his wife and son. The NGX Group held an Afternoon of Tributes and Closing Gong Ceremony yesterday for him in collaboration with the Coronation Group. In a poignant

Image
28-February-2024

Fans Anticipate ‘Return of Maleeka (Atupa)’ by Mobolaji Samuel

By Modupe Gbadeyanka Some movie lovers are already calling on a movie producer in Nigeria, Ms Mobolaji Samuel, to release the sequel to her captivating film, Maleeka, Return of Meleeka (Atupa). The quest to see the second part of the flick is due to the exploits of the Nollywood filmmaker in the first part. However, she has called for calm, assuring her fans that the release date of her latest work of art would be announced very soon. Speaking recently on the Return of Maleeka (Atupa), the charming movie maker described the film as a story of faith and resilience,

Image
28-February-2024

FG Selects Learning Community Managers for 3MTT Initiative

By Modupe Gbadeyanka The federal government has selected Learning Community Managers for the 3MTT Initiative for all 36 states of the federation and the Federal Capital Territory (FCT). The managers were picked for the programme by the Federal Ministry of Communications, Innovation & Digital Economy, which is handling the initiative. Recall that the government secured N1 billion in partnership with IHS Nigeria to support the 3MTT Learning Community. The selection of Learning Community Managers marks a significant milestone in the government’s efforts to empower Nigeria’s tech talents. These individuals will play a crucial role in managing and assisting participants in

Image
28-February-2024

Renowned Embryologist Dr Marta Jansa Perez Visits Bridge Clinic Nigeria

By Modupe Gbadeyanka A renowned embryologist, Dr Marta Jansa Perez, has visited the Bridge Clinic Nigeria in Lagos, reinforcing its commitment to excellence in reproductive healthcare. Ms Perez is the Director of Embryology at Bridge Clinic London. Her visit to the Nigerian affiliate of the foremost healthcare organisation is a testament to the partnership between the two clinics, opening new avenues for the exchange of expertise and resources. The health practitioner arrived at Bridge Clinic Nigeria on Monday, February 19, 2024. Her week-long visit was meticulously structured around training, process and quality improvement, research and development, and guidance on best

Image
28-February-2024

Zero Routine Gas Flares and Delta Communities

By Jerome-Mario Utomi It is common knowledge that in pursuit of meeting the targets of 20 per cent (unconditional) and 47 per cent (conditional) greenhouse gas emission reduction as contained in the Nationally Determined Contribution under the Paris Accord reportedly signed by the President Bola Tinubu administration, the Nigerian National Petroleum Company Limited/TotalEnergies joint venture recently achieved zero routine gas flare in all its assets. While it is obvious that “the significance of this achievement is that the last routine flare volume of about 12MMscf/d (12 million standard cubic feet per day) of gas has now been eliminated giving rise

Image
28-February-2024

70 Active Stanbic IBTC Bank Customers Grab N7m in January Draws

By Aduragbemi Omiyale The sum of N7 million has been won by 70 active customers of Stanbic IBTC Bank in its ongoing Reward4Saving Promo. The money was won in the January 2024 draw, bringing the total number of beneficiaries since the inception of the promo in 2021 to 1,424 valued at N234 million, a statement from the company said. The Reward4Saving Promo was created to foster disciplined saving habits among Nigerians, offering them rewards for achieving specified savings targets. In the January draw, 10 winners were selected from each of the seven business regions operated by the bank in Nigeria,

Image
28-February-2024

Firms in Nigeria to Pay Annual Levy for Hiring Foreigners

By Aduragbemi Omiyale A new tax known as Expatriate Employment Levy (EEL) has been introduced by the federal government and it is to be paid by companies, which hire foreigners to work in Nigeria. The scheme was launched on Tuesday in Abuja by President Bola Tinubu and it is to close wage gaps between expatriates and Nigerian workers. The government explained that the policy aims to find a balance between leveraging foreign expertise and fostering local talent in Nigeria’s job market through the EEL, emphasising that it is not to discourage foreign investments. It was stressed that the level would

Image
28-February-2024

Senate Advocates Introduction of Food Stamps in Nigeria

By Adedapo Adesanya The Senate has urged the federal government to introduce the Nigerian version of the “food stamps programme” as an interim intervention to cushion the effects of food shortages in the country. This followed the adoption of a motion on the Introduction of Food Stamps in Nigeria as an Interim Measure to Address Imminent Food Insecurity in the country, by Mr Ali Ndume, the Senate Chief Whip at plenary on Tuesday. Presenting the motion, Mr Ndume said that in other countries, like the United States, food stamps were government-issued coupons that had been in use since 1939. “This is

Image
28-February-2024

Trucks Transit Parks Reflects Industry Impact, Future Opportunities

By Modupe Gbadeyanka A leading technology company specializing in mobility solutions, Trucks Transit Parks (TTP) Limited, is marking its third year of operations. As part of this, the firm is reflecting on the significant impact it has made in the maritime and logistics industry. TTP, since its inception to revolutionize the maritime and logistics sector in Nigeria through truck mobility solutions powered by technology, has emerged as a key player in driving port terminal efficiency, reducing traffic congestion, and creating new business opportunities within the Apapa port economic zone. “Our third anniversary of operations provides us an opportunity to reflect