Nigeria’s average daily crude output fell in March, to an average of 1.40 million barrels per day, from 1.465 mbpd in February.
This is happening amid a global price crash, which also threatens the nation’s budget.
According to data by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the daily crude production figure for March was an average of 1.40 million barrels per day, down from 1.465 mbpd in February.
In January, crude production grew slightly above the 1.5 mbpd quota allotted to Nigeria by the Organisation of the Petroleum Exporting Countries (OPEC), raising the country’s hopes of realizing its 2 mbpd target in 2025.
However, in February, production dropped to 1.67 mbpd in February and has further dropped to 1.603 mbpd in March.
According to the NUPRC, “Lowest and peak production in March were 1.49 million bopd and 1.76 million bopd, respectively. The daily average production in March was 1,603,776 barrels per day, comprising both crude oil (1,400,783 bopd) and condensate (202,993 bopd). The average crude oil production was 93 per cent of the OPEC quota (1.5 mbpd).”
Meanwhile, the price of crude oil has fallen by over $10 below the $75 per barrel projected by the Federal Government in the 2025 budget.
As of Sunday, Brent was $64.76 per barrel, while WTI stood at $61.50 per barrel.
Argus Media recently disclosed that crude oil grades from Nigeria faced tepid demand in the April trade cycle as ample availability of lower-priced alternatives such as US WTI, Caspian CPC Blend, and other Mediterranean grades enticed European buyers.
The report stated that the trade cycle has since shifted to May, “with as many as 15 April-loading Nigerian cargoes still looking for buyers.”
