OPEC reports rise in global oil production, Nigeria contributes significantly

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The Organization of the Petroleum Exporting Countries (OPEC) announced a rise in global crude oil production in February 2024. According to their monthly oil market report, total output increased by 203,000 barrels per day (bpd) to an average of 26.57 million bpd.

“Crude oil output increased mainly in Libya and Nigeria, while production in Iran and Iraq decreased. Libya’s production climbed by around 144,000 bpd, the largest growth seen last month, while output rose in Nigeria and Saudi Arabia by 47,000 bpd and 18,000 bpd, respectively,” the report reads.

“Demand for OPEC crude is projected to stand at about 28.5 million bpd in 2024, 1.1 million bpd higher than in 2023, while demand for OPEC crude in 2025 is expected to reach about 28.8 million bpd.”

Meanwhile, “the non-OPEC output forecast for 2024 has been revised downward. OPEC natural gas liquids and non-conventional liquids production is expected to increase by around 60,000 bpd to average 5.5 million bpd this year, and additional growth of 110,000 bpd is forecast for 2025 to an average 5.6 million bpd.”

Read Also: OPEC reports Nigeria’s oil production rises in August, closing gap with Libya

Nigeria Leads the Increase:

The report highlights Nigeria as a key contributor to this rise. Nigerian production climbed by an estimated 26.57 million bpd in February, although the exact breakdown within the country wasn’t specified. This increase could be attributed to several factors, including:

• Improved security in oil-producing regions: Recent efforts to address pipeline vandalism and militant activity may be facilitating a more stable production environment.
• Increased investment in the oil sector: Investments in infrastructure and exploration could be leading to higher output from existing wells or new discoveries coming online.

Demand Forecast Remains Steady:

Despite the production increase, OPEC left its crude oil demand forecast unchanged for 2024. The organization anticipates demand to reach approximately 28.5 million bpd, reflecting a projected increase of 1.1 million bpd compared to 2023.

Non-OPEC Growth Expected:

The report also revised its forecast for non-OPEC oil production in 2024. While the initial forecast predicted a decline, OPEC now anticipates a slight increase of 1.1 million bpd to reach 70.5 million bpd on average throughout the year.

Looking Ahead:

The OPEC report provides a positive outlook for the global oil market in the short term. Increased production, particularly from Nigeria, suggests a potential for more stable oil prices. However, long-term factors like the transition towards renewable energy remain to be considered.