Nigeria’s crude oil production fell by 2.3 million barrels in July 2022 when compared to the previous month of June, according to data from the Organization of Petroleum Exporting Countries released on Thursday.
According to OPEC’s latest Monthly Oil Market Report for August 2022, crude oil production figures based on direct communication showed that Nigeria’s output fell by an average of 74,000 barrels per day in July.
This means that the country lost approximately 2.3 million barrels of crude oil during the month of July. The organization also stated that the average cost of Brent crude, the global benchmark for oil, was $105.12/barrel during the month under review.
By losing 2.3 million barrels in July of this year, Nigeria’s oil earnings fell by approximately $241.1 million or N101.13 billion (at the official exchange rate of N419.37/$) in the month under review.
According to OPEC data, Nigeria’s oil production was 1.158 million barrels per day in June 2022, but it fell to 1.084 million barrels per day in July.
According to OPEC figures released on Thursday, the country produced 1.024 million barrels per day in May of this year.
The Federal Government, operators, and experts have consistently blamed crude oil theft in the Niger Delta for Nigeria’s low output and continued failure to meet OPEC’s monthly oil production quota.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, blamed the challenges in the oil sector on the country’s high level of insecurity.
This, he said, had continued to discourage investors in the sector, resulting in lower crude oil production and lower earnings for Nigeria despite rising crude prices.
“Investors in the oil and gas sector continue to bemoan the challenges posed by insecurity, oil theft, unstable policies, and ineffective fiscal regimes,” he said.
“The downstream sector has continued to be weighed down by pricing regimes and regulatory environments that have dimmed the sector’s growth prospects.”
Meanwhile, OPEC reported that crude oil prices fell in July compared to June, with crude in the OPEC Reference Basket falling by $9.17, or 7.8 percent, month on month in July to an average $108.55/barrel.
“Oil futures prices remained extremely volatile in July, despite a significant drop in liquidity.” The ICE Brent front month fell $12.38 or 10.5% in July to average $105.12/barrel, while the NYMEX WTI fell $14.96 or 13.1% to average $99.38/barrel, according to the global oil cartel.