Nigeria Loses Oil Worth N101 Billion – OPEC

Nigeria Loses Oil Worth N101 Billion - OPEC

Nigeria Loses Oil Worth N101 Billion – OPEC

Nigeria Loses Oil Worth N101 Billion – OPEC

According to information released on Thursday by the Organization of Petroleum Exporting Countries, Nigeria’s crude oil production fell by 2.3 million barrels in July 2022 compared to June.

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According to OPEC’s most recent Monthly Oil Market Report for August 2022, direct communication data on crude oil production showed that Nigeria’s output decreased by an average of 74,000 barrels per day in July.

This suggests that the nation lost around 2.3 million barrels of crude oil throughout the course of the month of July’s 31 days. The organization added that during the month under examination, the average price of Brent crude, the world’s standard for oil, was $105.12 per barrel.

Nigeria Loses Oil Worth N101 Billion – OPEC

By losing 2.3 million barrels in July this year, it means Nigeria’s oil earnings fell by about $241.1m or N101.13bn (at the official exchange rate of N419.37/$) in the month under review.

Data from OPEC showed that Nigeria’s oil production in June 2022 was 1.158 million barrels per day, but this dropped to 1.084 million barrels per day in July.

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The country had produced 1.024 million barrels per day in May this year, according to figures released by OPEC on Thursday.

The Federal Government, operators, and experts have consistently fingered crude oil theft in the Niger Delta as the major reason for Nigeria’s poor output and its continued failure to meet the monthly oil production quota approved by OPEC.

Nigeria Loses Oil Worth N101 Billion – OPEC

The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, blamed the challenges in the oil sector on the high level of insecurity across the country.

This, he said, had continued to discourage investors in the sector, leading to lower production of crude oil and lower earnings for Nigeria despite the increased cost of crude.

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He said, “Investors in the oil and gas sector continue to lament the challenges posed by insecurity, oil theft, unstable policies, and inappropriate fiscal regimes.

“The downstream sector has continued to be weighed down by the pricing regimes and the regulatory environments which have continued to dim the growth prospects in the sector.”

Nigeria Loses Oil Worth N101 Billion – OPEC

Meanwhile, OPEC stated that crude oil prices dipped in July, as against their costs in June, adding that crude in OPEC Reference Basket fell by $9.17 or 7.8 per cent month-on-month in July to average $108.55/barrel.

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“Oil futures prices remained highly volatile in July, amid a sharp drop in liquidity. The ICE Brent front month declined $12.38 or 10.5 percent in July to average $105.12/barrel and NYMEX WTI declined by $14.96 or 13.1 per cent to average $99.38/barrel,” the global oil cartel stated.

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