Nigeria Tops African Oil Production In October 2023 Despite Biting Inflation 

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Nigeria emerged as Africa’s leading crude oil producer in October 2023, boasting a daily output of 1.35 million barrels, the Organization of Petroleum Exporting Countries (OPEC), report revealed.

The OPEC report indicated that Nigeria’s production figures are closely followed by Libya at 1.18 million barrels per day, Angola at 1.14 million barrels per day, and Algeria at 961,000 barrels per day. These statistics paint a new picture of the African oil landscape.

However, beyond these figures, the OPEC report delivers more insights. It reveals that in October 2023, total OPEC-13 crude oil production averaged 27.90 million barrels per day, marking an 80,000 barrels per day increase compared to the previous month. The spike is attributed to heightened crude oil output in Angola, Iran, and Nigeria. Yet, it’s not all rosy, as production decreased in Libya, Saudi Arabia, and Kuwait.

In the world of oil demand, the OPEC report takes a closer look at 2023. It now forecasts an uptick in oil demand growth, reaching 2.5 million barrels per day. This positive outlook, however, comes with a twist – a decline in oil prices. The report attributes this downward trend to significant reductions in net long positions by financial market speculators throughout October.

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Furthermore, the OPEC report shines a spotlight on Nigeria’s rising inflationary pressure. This surge in inflation is linked to the removal of petrol subsidies and the devaluation of the naira, resulting in a noticeable increase to 26.7% in September, up from 25.8% in August.

Interestingly, the demand for OPEC crude in 2023 has held steady at 29.1 million barrels per day, showing a modest increase of 0.6 mb/d compared to the previous year. The report delves even deeper into the numbers, providing a quarterly breakdown of OPEC crude production against demand.

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As for 2024, the forecast remains steady, with the demand for OPEC crude holding at 29.9 million barrels per day, indicating a 0.8 mb/d increase compared to the estimated 2023 level.

In addition to these key findings, the OPEC report highlights a noteworthy development in the realm of petrol exports from Europe to West Africa. Following Nigeria’s removal of petrol subsidies, exports have reportedly dwindled by approximately 28%.

Reduced refinery output during maintenance and a drop in demand have led to stock increases in the Atlantic Basin. This shift in petrol trade underscores the far-reaching impacts of Nigeria’s policy decisions.

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