Title: Nigeria’s Oil Production to Increase in August 2024
During the month of August 2024, Nigeria recorded a significant increase in its oil production, moving closer to its budget target of 1.7 million barrels per day for the year 2024. According to the latest OPEC Monthly Oil Market Report, Nigeria’s oil production reached 1.4 million barrels per day in August, excluding condensate, an increase of 3.4% from 1.3 million barrels per day in July.
This increase is all the more significant when compared to the 1.2 million barrels per day recorded in the same period last year, representing an impressive growth of 16.7% year-on-year.
It is worth noting that this production of 1.4 million barrels per day does not include the 227,000 barrels per day of condensate produced by Nigeria, which brings the country’s total production to over 1.6 million barrels per day. At the same time, Nigeria remains the largest oil producer in Africa, while Congo has the lowest production at 270,000 barrels per day.
Data from secondary sources even indicate that Nigeria’s oil production stood at 1.44 million barrels per day in August, which helps bolster the total production of OPEC member countries.
Despite this encouraging increase in oil production, Nigeria faces a major challenge: the price of oil. Indeed, the price of Bonny Light, Nigeria’s benchmark crude oil, remained at around $71 per barrel in August, representing an 8.9% decline from the budget target of $77.96 per barrel for the year 2024.
This decline in prices underscores the importance for Nigeria to diversify its economy and reduce its dependence on oil revenues. In this context, the increased fight against oil theft in the Niger Delta, as highlighted by Mazi Colman, President of the Oil Service Providers Association of Nigeria, is a step in the right direction to protect the country’s oil resources and ensure stable production.
In conclusion, the increase in oil production in Nigeria in August 2024 is encouraging news for the country’s oil sector, but persistent challenges, such as oil price volatility, underscore the importance of prudent management of oil resources to ensure long-term economic stability.