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Nigeria records low Crude oil production

OPEC, in its January report, has disclosed that Nigeria’s daily Crude oil production fell by 155,000 barrels.

It added that a significant rise in oil prices would brighten the country’s economic growth this year.

According to the reports by OPEC, the country’s oil production fell to 1.17 million barrels per day in December 2020, from 1.33 million BPD in November. Also, total crude oil production by the 13-member OPEC averaged 25.36 million BPD in December, up by 280,000 million BPD in the previous month.

The group said, “Crude oil output increased mainly in Libya, Iraq and the UAE, while production decreased primarily in Nigeria, Congo and Angola. Libya’s crude oil output in December rose to 1.22 million bpd, according to secondary sources.”

A group known as OPEC+ which comprises of OPEC and Russian-led allies has been restricting output to support prices and reduce oversupply since January 2017.

Recall that Nigeria’s economy entered a recession in the third quarter of 2020 with real GDP contracting by 3.6 per cent year-on-year after a sharp contraction of 6.1 per cent y-o-y in Q2.

OPEC added that “In the meantime, a meaningful rise in oil prices following the recent DoC (Declaration of Cooperation) decisions along with a positive trajectory from COVID-19 vaccines would brighten the 2021 outlook and lay the groundwork for a hopeful medium-term real GDP expansion.”

According to the group, at the end of 2020, there was a significant increase in the demand for oil which has been attributed to actions taken to restrict measures in major consuming countries in the country.

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