• Home
  • News
    • African News
    • Nigerian
    • World
    • News UK
    • Politics
  • Sports
  • Business
  • Entertainment
  • Health
Nigerian Watch Newspaper
Nigerian Watch Newspaper
 
 
 
  • Home
  • News
    • African News
    • Nigerian
    • World
    • News UK
    • Politics
  • Sports
  • Business
  • Entertainment
  • Health
Home
Business

Nigeria faces bleak future as December crude oil output tumbles to a record low of 1.17m barrels a day

January 15th, 2021 African News, Business, News, Nigerian, World comments

Nigeria faces bleak future as December crude oil output tumbles to a record low of 1.17m barrels a day

NIGERIA’S ongoing economic woes got considerably worse last month as December crude oil production tumbled to low of 1.17m barrels a day as output was curtailed in line with Organisation of the Petroleum Exporting Countries (Opec) agreements.

 

Following the global economic slowdown brought about by the coronavirus pandemic, Opec agreed to reduce production among its 13 members in a bid to boost prices. Historically, Nigeria’s Opec quota has been 2.5m barrels a day and her annual budget is predicated on this figure but with output now down to unprecedented lows, an economic crisis is looming.

 

In its monthly January report, Opec stated that Nigerian crude oil production fell by 155,000 barrels in December to 1.17m barrels per day from 1.33m barrels in November. Opec added that a meaningful rise in oil prices would brighten Nigeria’s economic outlook this year, although is dependent on global demand picking up significantly.

 

Total output from Opec’s 13-member states averaged 25.36m barrels per day in December, up by 280,000m barrels from the previous month. Opec noted in the report that Nigeria’s economy entered a recession in the third quarter of 2020 with real gross domestic product contracting by 3.6% year-on-year after a sharp contraction of 6.1% in the second quarter of the year.

 

An Opec spokesman said: “Crude oil output increased mainly in Libya, Iraq and the United Arab Emirates, while production decreased primarily in Nigeria, Congo and Angola. Libya’s crude oil output in December rose to 1.22m barrels per day, according to secondary sources.”

 

Opec and its Russia-led allies, known as Opec+, have been curbing output to support prices since 2017. It had believed that global demand would improve toward the end of 2020, mainly due to successful coronavirus containment measures in major consuming countries in the region.

  • Tags
  • Angola
  • Congo
  • coronavirus pandemic
  • Iraq
  • Libya
  • Opec
  • Organisation of the Petroleum Exporting Countries
  • Russia
  • United Arab Emirates
Facebook Twitter Google+ LinkedIn WhatsApp
Next article Power minister reveals that Nigeria needs to attract $4bn clean energy investment annually
Previous article Former president Jonathan named Africa Peace and Security Leader of the Year 2020

Related Posts

Governor Ortom welcomes Buhari's order that holders of AK47 rifles should be shot at sight African News

Governor Ortom welcomes Buhari's order that holders of AK47 rifles should be shot at sight

Buhari and Osinbajo to be vaccinated this Saturday as part of campaign to allay public fears African News

Buhari and Osinbajo to be vaccinated this Saturday as part of campaign to allay public fears

Buhari imposes no flight zone over Zamfara as herdsman says government armed them African News

Buhari imposes no flight zone over Zamfara as herdsman says government armed them

Facebook Comments

 

Follow Us on Facebook


Follow us on Twitter


Follow nigerianwatch on TwitterTweet

  • About us
  • Legal agreement
  • Privacy policy
  • Contact us
  • Back to top
© 2012 - Nigerian Watch. All rights reserved.
Website by Mouldme.com