In December 2023, the Organization of Petroleum Exporting Countries (OPEC) maintained a steady crude oil production, averaging 28.05 million barrels per day (bpd), according to a Bloomberg survey. Notably, Nigeria contributed an additional 50,000 bpd, boosting the overall output,leadership reports.
OPEC adhered to production constraints, exemplified by countries like the United Arab Emirates and Angola, which scaled back their production. However, Nigeria counteracted these reductions by increasing its output by 50,000 barrels a day to 1.49 million a day in December. This move was aligned with a revised quota negotiated successfully for the year.
The latest data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reports the country’s daily oil production at 1.25 million barrels, communicated through its “direct communication” channels.
Looking ahead, OPEC projects Nigeria to produce 1.5 million bpd in 2024, though the federal government suggests the country could potentially reach as high as 2 million bpd this year.
Bloomberg anticipates a reduction in output this month as the OPEC+ coalition implements additional cuts of around 900,000 barrels per day to prevent a potential surplus and protect declining crude prices. Saudi Arabia leads this reduction by maintaining its current cut.
The UAE has also committed to decreasing its oil production by 163,000 barrels per day, while Iraq plans to cut an additional 220,000 barrels per day for the first three months of the year.
Despite Angola’s withdrawal from OPEC in December, citing its refusal to accept a reduced limit imposed by OPEC’s leaders, its output in December, consistent with the level it had rejected, reflected years of underinvestment.
Several countries, including Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Kazakhstan, and Algeria, aim to gradually increase production, contingent on the performance of the oil market.
OPEC+ is implementing these measures to reduce oil production in response to declining prices from nearly $98 in late September. Concerns about a potential global economic slowdown in 2024 are heightening, leading to an expectation of surplus oil availability.