Market News

Nigeria’s crude oil production averaged 1.451 million barrels per day (mbp/d) in September 2021, indicating an increase of 0.156mbpd over the 1.296mbp/d recorded in August.

The Organisation of the Petroleum Exporting Countries (OPEC) which made this known in its oil market report for October 2021, released yesterday, also said Nigeria’s increased output along with Saudi Arabia and Iraq boosted its total OPEC-13 output for the month by 0.49mbpd month on month.

OPEC also lowered its growth forecast for global oil demand to 5.8mbpd in the fourth quarter down from the 5.96mbpd previously.

In the current year, global demand for crude oil is expected to increase by an average of 5.8 million barrels per day,

“According to secondary sources, total OPEC-13 crude oil production averaged 27.33 mb/d in September 2021, higher by 0.49 mb/d m-o-m. Crude oil output increased mainly in Nigeria, Saudi Arabia and Iraq,” the oil cartel said in its monthly report.

Previously, OPEC experts had expected a growth of 5.96 million barrels. It now assumes that 99.82 million barrels per day will be needed worldwide in the fourth quarter.

It maintained a growth forecast of 4.2 million bp/d for next year.

The group of oil-producing countries said however, that natural gas prices at record highs could provide a potential boost to oil demand growth as industrial users switch to oil products instead.

“Should this trend continue, fuels such as fuel oil, diesel, and naphtha could see support, driven by higher demand for power generation, refining and petrochemical use,” OPEC said.

European gas at the Dutch TTF hub on Wednesday stood at a crude oil equivalent of about $177 a barrel, based on the relative value of the same amount of energy from each source, Reuters calculations based on Eikon data showed – higher than the record high Brent crude price of $147 in 2008.