PBA ReporterAn emerging report has claimed that Nigeria’s earnings from crude oil has dropped by about N75.9bn this year despite the increase in global oil prices for the third consecutive month in March 2022.
The report was contained in the latest data of the April 2022 Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries.
Join our WhatsApp ChannelThe report showed that while oil prices had been on the increase since January this year, Nigeria’s production had been on the decrease.
According to it, “Crude oil spot prices rose for the third-consecutive month in March. The North Sea Dated benchmark gained more than $20/barrel on a monthly average and WTI gained almost $17/barrel, on the back of escalating geopolitical tensions in Eastern Europe and concerns this might result in large oil supply shortages, amid trade dislocations.
“The OPEC Reference Basket price increased $19.53, or 20.8 per cent, to settle at $113.48/barrel. Oil futures prices witnessed elevated volatility due to the uncertain short-term oil supply and demand outlook. The ICE Brent front-month rose $18.36, or 19.5 per cent, to average $112.46/barrel and NYMEX WTI gained $16.63, or 18.1 per cent, to average $108.26/barrel.”
This implied that the country’s oil production had been falling since January this year, for instance, while the country produced 1.413 million barrels of crude oil daily in January, this dropped to 1.378 million barrels per day in February.
The report indicates a daily plunge of 35,000 barrels and translates to a total loss of 980,000 barrels of crude oil in February 2022.
The country’s crude oil production crashed further by 744,000 barrels in March 2022 when compared to what the country produced in the preceding month of February.
An analysis of the OPEC document showed that Nigeria’s oil production dropped from the 1.378 million barrels per day recorded in February 2022 to 1.354 million barrels per day in March, indicating a daily plunge of 24,000 barrels of crude oil.
This implies that for the 31 days in March, the country’s oil production dropped by a total of 744,000 barrels, despite the rise in global oil prices.
The average prices of Brent crude, the global benchmark for oil, in February and March 2022 were $97.13/barrel and $117.25/barrel, according to data from the global statistical firm, Statistica.
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