Nigeria’s crude oil production in December 2020 fell to 1.17 million barrels per day, sinking to an all-time low last month by 155,000 barrels amid the production cuts placed by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies. OPEC made this known on Thursday in a January report, saying an increase in oil production would enhance Nigeria’s economy this year, particularly as Nigeria’s economy entered recession in the last quarter of 2020. “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,” OPEC said.
OPEC and OPEC+ have since 2017 been cutting output to support oil prices and oversupply.
The group also noted “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,” it said.
Meanwhile, the group said oil demand was estimated to have improved toward the end of 2020, following the successful containment measures in major oil-consuming countries in the region.