By Adedapo Adesanya
Nigeria’s crude oil production declined by 0.7 per cent month-on-month to an average of 1.417 million barrels per day in February 2022.
This was disclosed by the Organisation of the Petroleum Exporting Countries (OPEC) in its Oil Market Report for March 2022.
The report said the figure showed a decrease of 10,000 barrels per day when compared to the 1.427 million barrels per day produced averagely in the month of January 2022
“According to secondary sources, total OPEC-13 crude oil production averaged 28.47 mb/d in February 2022, higher by 0.44 mb/d month-on-month.
“Crude oil output increased mainly in Saudi Arabia and Libya, while production in Nigeria and Equatorial Guinea declined,” the report said.
The group noted that Nigeria’s Gross Domestic Product (GDP) grew about 4.0 per cent in the fourth quarter of 2021, which was the fifth consecutive quarter of economic expansion.
It said this was amid the ongoing recovery from the pandemic effects that dragged down the country’s main economic activities.
The report said: “The annual inflation rate stood at 15.6 per cent in January 2022, almost unchanged from the previous month.
“On a monthly basis, consumer prices were up 1.47 per cent, following a 1.82 per cent increase in the previous month.
“Higher food costs related to the geopolitical tensions could further fuel inflation.
“Stanbic IBTC Bank Nigeria’s Purchasing Managers’ Index surged to 57.3 in February from 53.7 in the previous month, as the non-oil private sector expanded the most since November 2019.”
It said the increasing oil price might provide ample support for the Nigerian economy but that the disruption to global trade flows and supply shortages could offset this positive impact.
OPEC’s 13 members boosted output by 440,000 barrels a day to 28.47 million a day in February bringing the average for the year so far to 28.25 million a day, or a little above the average required this quarter.
The cartel warned that Russia’s invasion of Ukraine threatens to intensify the surge in global inflation, hurting oil demand, and investment.
“This conflict has so far led to a number of issues, including rising commodity prices, which are further escalating global inflation.
“The effects of the conflict and especially the impact of rising inflation, if sustained, will lead to a decline in consumption and investments to varying degrees,” OPEC said in the monthly report.
