Nigeria’s oil output drops by 14% to an average of 1.5mb/d
***As Bonny Light price hovers at $49 per barrel
By Udeme Akpan, Ediri Ejoh & Prince Okafor
Nigeria might be under pressure to fund its N13.8 trillion 2021 budget following a significant drop of its oil output by 14.08 percent in the first 10 months of 2020, according to data obtained from the Organisation of Petroleum Exporting Countries, OPEC.
A breakdown showed that the nation produced an average of 1.5 million barrels per day, mb/d, (excluding Condensate) between January and October 2020, indicating a drop of 2.5 mb/d when compared to 1.7mb/d recorded in the corresponding period of 2019.
The dip in output has also been worsened by the prolonged lull in the international market, characterised by low prices of crudes, including Nigeria’s Bonny Light, which demand has been affected because of the resurgence of Coronavirus pandemic in many nations, including China that accounts for one-third of the global oil demand growth.
However, when data obtained from secondary or unofficial sources were considered, OPEC put the nation’s output at 1.4 mb/d.
This was even as the price of Bonny Light, Nigeria’s premium oil grade hovered at $48 per barrel in the international market.
This means that the nation’s 2021 budget, which was benchmarked on 1.86 mb/d, including condensate and $40 per barrel might be affected, considering that the nation’s cost of oil production has been estimated at $30 per barrel.
Demand
Nevertheless, the organisation, currently battling to achieve stability, noted that
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