OPEC Report: Nigeria Crude Oil Production Record Increase Of 5,000 bpd In June

A rise of 5,000 barrels per day (bpd) in Nigerian crude oil production was reported by the Organisation of Petroleum Exporting Countries (OPEC).

According to OPEC, Nigeria's crude oil output grew to an average of 1.238 million barrels per day (bpd) in June 2022 compared to the 1.233 million barrels per day produced on average in May 2022.

This was stated by OPEC on Tuesday in Lagos in its Oil Market Report for July 2022.

“According to secondary sources, averaged 28.72 mbpd in June 2022, higher by 234,000 barrels per day month-on-month.

“Crude oil output increased mainly in Saudi Arabia, the United Arab Emirates, Iran, Kuwait and Angola, while production in Libya and Venezuela declined,” the report said.

According to the research, rising inflation has dampened private-sector optimism and hampered consumer spending in Nigeria, despite an improvement in the price of fossil fuels.

It disclosed that in May 2022, the composite Consumer Price Index increased from 16.8% y-o-y to 17.7% y-o-y.

“In response to the elevated inflationary pressures, the Central Bank of Nigeria raised its policy rate by 150 basis points to 13 per cent bringing borrowing costs to the highest since April of 2020.

“It was the biggest rate hike since July of 2016 amid concerns that persistent inflationary pressures could weigh on the country’s fragile recovery.

“Meanwhile, the Stanbic IBTC Bank Nigeria Purchasing Manger’s Index fell to 50.9 in June of 2022 from 53.9 in the prior month, pointing to the weakest improvement in business conditions in Nigeria’s private sector since January of 2021.

“Overall, the above-average fossil fuel prices support a firmly positive outlook for the rest of the year, but concerns over soaring inflation would increase uncertainty next year,” the report added.