By Ikenna Omeje
Nigeria’s oil output has dropped by over 100,000 barrels per day, down to 1.3 million bpd in August as against 1,411,000 bpd in June, 1,705,000 bpd in April and 1,436,000 in May, which resulted in a change of -25 in June and May.
This was contained in the Organisation of Petroleum Exporting Countries (OPEC) Monthly Oil Market Report for the month of September released on Monday.
The report indicates a huge shortfall against the OPEC quota of 1.4 mb/d , which is even short of 700,000 bpd to the country’s crude oil benchmark of 2.1 mb/d for the 2020 budget.
This is coming as the price of Bonny Light, Nigeria’s premium oil grade, drop to $37.59 per barrel from $43.
The new price, appears driven by the resurgence of Covid-19 pandemic across the world.
On global oil demand, the report said: “In 2020, the global oil demand contraction is revised down further by 0.4 mb/d, now contracting by 9.5 mb/d, to average 90.2 mb/d. In the OECD, demand is revised higher by around 0.1 mb/d due to lesser-than-expected declines in all sub-regions during 2Q20. ‘‘In the non-OECD, the 2020 oil demand outlook is revised lower by around 0.5 mb/d, due to weaker oil demand performance in Other Asia, particularly in India. Turning to 2021, the negative impact on oil demand in Other Asia is projected to spill over into 1H21.
“At the same time, a slower recovery in transportation fuel requirements in the OECD will limit oil demand growth potential in the region. Additionally, risks remain elevated and skewed to the downside, particularly in relation to the development of COVID-19 infection cases and potential vaccines.
“Furthermore, the speed of recovery in economic activities and oil demand growth potential in Other Asian countries, including India, remain uncertain. As such, 2021 world oil demand is now forecast to grow by 6.6 mb/d, some 0.4 mb/d lower compared with the previous month’s assessment to average 96.9 mb/d.”
