Nigeria Boosts OPEC’s Production by 50,000 barrels In December 2023–Bloomberg
Nigeria boosting output by an extra 50,000 bpd, thereby helping to maintain the Organization of Petroleum Exporting Countries (OPEC) crude oil production at a production level of an average of 28.05 million bpd in December 2023, a survey by Bloomberg has revealed.
OPEC has restricted Nigeria production in 2024 to 1.5 million bpd in 2024, although the federal government protected the country can produce as high as 2 million bpd this year.
OPEC sustained supply restraints from countries like the United Arab Emirates and Angola cutting back on production. However, other countries like Nigeria compensated for the reduction.
Subsequently, OPEC was able to average 28.05 million bpd in December.
According to Bloomberg, output is anticipated to decrease this month as the OPEC+ coalition implements additional cuts of approximately 900,000 barrels per day. The objective is to prevent a potential surplus and safeguard declining crude prices.
Saudi Arabia is leading this reduction by continuing its current cut.
The UAE also agreed to reduce its oil production by 163,000 barrels per day, and Iraq plans to cut an additional 220,000 barrels per day for the first three months of the year.
In addition, Angola announced its exit from OPEC in December, citing its refusal to accept a reduced limit imposed by OPEC’s leaders, but its output in December eroded by years of underinvestment was in line with the level it had rejected.
Countries like Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Kazakhstan, and Algeria intend to gradually increase production, depending on how the oil market is doing.
OPEC+ wants to produce less oil because the prices have dropped from almost $98 in late September. There are worries about the global economy slowing down in 2024, and there’s an expectation that there will be more oil available than needed.
Additionally, Brazil will become a part of OPEC in January 2024.