Infostride News reports that Nigeria has maintained its position as Africa’s leading crude oil producer for October 2023, according to the monthly oil market report released by the Organization of Petroleum Exporting Countries (OPEC) on November 13, 2023.
The report highlights the oil production figures, excluding condensate production, from the top four oil producers in Africa:
– Nigeria: 1.35 million barrels per day
– Libya: 1.18 million barrels per day
– Angola: 1.14 million barrels per day
– Algeria: 961,000 barrels per day
As per secondary sources, the total OPEC-13 crude oil production averaged 27.90 million barrels per day in October 2023, reflecting an increase of 80 thousand barrels per day month-on-month. Notably, crude oil output rose mainly in Angola, Iran, and Nigeria, while production decreased in Libya, Saudi Arabia, and Kuwait.
The OPEC report provides more insights, revealing a slight increase in the world’s forecast for oil demand growth in 2023, now standing at 2.5 million barrels per day. Despite robust market fundamentals, the report draws attention to a recent decline in oil prices, primarily attributed to significant reductions in net long positions by financial market speculators throughout October.
Furthermore, the report sheds light on Nigeria’s escalating inflationary pressure, primarily resulting from the removal of petrol subsidies and the devaluation of the naira. This led to a notable acceleration in the pace of inflation, with the rate spiking to 26.7% in September, a significant rise from August’s 25.8%.
According to the OPEC report, the demand for OPEC crude in 2023 has remained steady at 29.1 million barrels per day, showing a modest increase of 0.6 mb/d compared to 2022. The report also offers a quarterly breakdown of OPEC crude production against demand.
In the first quarter of 2023, OPEC crude production reached 28.8 mb/d, surpassing demand by 0.4 mb/d. Moving to the second quarter, OPEC crude production slightly decreased to 28.3 mb/d, falling below demand by 0.1 mb/d. The third quarter witnessed a more substantial reduction, with OPEC crude production averaging 27.6 mb/d, lagging demand by 1.0 mb/d.
Looking ahead to 2024, the demand for OPEC crude remains unchanged at 29.9 mb/d, indicating a rise of 0.8 mb/d compared to the estimated 2023 level.
Additionally, the report highlights a noteworthy development concerning petrol exports from Europe to West Africa. Following the removal of petrol subsidies in Nigeria, these exports reportedly declined by approximately 28%. This decline was attributed not only to reduced refinery output during maintenance but also to a notable drop in demand, leading to substantial stock increases in the Atlantic Basin.
In conclusion, Infostride News delivers comprehensive coverage of OPEC’s monthly oil market report, offering detailed insights into Nigeria’s oil production, global demand forecasts, and the economic challenges facing the nation, particularly in terms of inflation and the impact on the oil industry. The report also touches on international trade dynamics, emphasizing the consequences of policy changes, such as the removal of petrol subsidies in Nigeria, on regional fuel exports.
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