Nigeria’s Oil Output Drops by 60,000 bpd in January, Weighs on OPEC Production.....CLICK HERE TO CONTINUE READING>>>.....CLICK HERE TO CONTINUE READING>>>
Nigeria’s crude oil production declined by 60,000 barrels per day (bpd) in January, contributing to a second consecutive monthly drop in OPEC output, a Reuters survey has revealed. The decline, attributed to lower exports, came despite increasing domestic demand driven by the ramp-up of the Dangote refinery.
The Organization of the Petroleum Exporting Countries (OPEC) pumped 26.53 million bpd in January, marking a 50,000 bpd decline from December’s revised total. Nigeria and Iran recorded the most significant reductions, offsetting a production rebound in the United Arab Emirates (UAE).
OPEC+ Maintains Output Cuts Until March
The decline aligns with OPEC+’s ongoing production cuts, which remain in place until the end of March due to global demand concerns and rising non-OPEC supply. However, the alliance confirmed plans to increase output from April.
Nigeria’s Decline Amid Domestic Refining Gains
Nigeria’s reduced exports weighed on OPEC’s overall output, even as domestic crude consumption rose. The Dangote refinery, which began operations in 2024, has started refining Nigerian crude, gradually reducing the country’s dependency on fuel imports.
Iran and Saudi Arabia Also See Declines; UAE Leads Gains
Iran’s output also fell by 60,000 bpd, potentially facing further constraints due to tighter U.S. sanctions. Saudi Arabia and Iraq, OPEC’s two largest producers, saw slight reductions, while the UAE posted the largest increase, boosting production by 90,000 bpd after partial maintenance in December.
Libya’s Production Rebounds
Libya, exempt from OPEC+ output restrictions, recorded a 40,000 bpd increase, recovering from production disruptions linked to a dispute over central bank control.
The Reuters survey, which tracks crude supply to the market, is based on data from financial group LSEG, industry sources, and oil tracking firms such as Kpler.