OPEC: Nigeria’s Oil Production Rises By 3.4% In August As Global Demand Outlook Adjusted

Nigeria sees oil production increase in August

Nigeria’s daily crude oil production rose by 3.4% in August, bringing its output to 1.352 million barrels per day (bpd), according to the latest monthly report by the Organisation of Petroleum Exporting Countries (OPEC).

This marks a significant rise from July’s figures, reflecting Nigeria’s recovery as Africa’s largest oil producer.

OPEC’s report, based on direct communication with Nigerian authorities, reveals an increase of 45,000 barrels per day from July’s production of 1.307 million bpd.

“This rise in production shows Nigeria’s commitment to stabilising its oil output amidst global uncertainties,” an OPEC official remarked. “The country continues to show resilience in the face of economic and operational challenges.”

OPEC data shows further gains

According to secondary sources, Nigeria’s crude oil production in August was even higher, reaching 1.448 million barrels per day—an increase of 57,000 bpd compared to the previous month.

This figure not only reinforces Nigeria’s position as Africa’s top oil producer but also highlights its role in the global oil market.

Libya, which had been Nigeria’s closest competitor, faced difficulties in maintaining steady production due to shutdowns in key oil fields during August.

The report highlights the potential benefits of Nigeria’s oil output, with experts noting that increased production could improve the country’s revenue and provide more financial stability. “A boost in oil production is a positive sign for Nigeria’s economy, especially as oil prices fluctuate,” said an energy analyst.

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OPEC lowers global oil demand forecast

In its August report, OPEC revised its forecast for global oil demand growth in 2024, lowering it to 2.03 million barrels per day from an earlier projection of 2.11 million bpd.

This adjustment reflects concerns about slowing economic activity and potential demand disruptions in various parts of the world.

“Global oil demand is expected to grow but at a slower rate than previously anticipated,” the OPEC official added. “We need to adjust our expectations based on market conditions and the potential impact of inflation and geopolitical tensions.”

OPEC has also lowered its 2025 global demand forecast to 1.74 million bpd, down from 1.78 million bpd.

Oil prices decline in August

Oil prices experienced a decline in August, affecting both the OPEC Reference Basket and other global benchmarks. The OPEC Reference Basket (ORB) dropped by $6.02, or 7.1%, to an average of $78.41 per barrel.

Similarly, the ICE Brent front-month contract fell by $5.00, or 6.0%, to $78.88 per barrel, and the NYMEX WTI front-month contract decreased by $5.05, or 6.3%, averaging $75.43 per barrel.

“These price declines are reflective of global market uncertainties,” explained an OPEC market analyst. “The overall decrease in demand growth and supply fluctuations are playing a key role in driving prices down.”

Future supply projections

In terms of future crude oil supply, OPEC expects non-OPEC+ countries to contribute significantly. Oil supply from these countries is projected to grow by 1.2 million bpd in 2024, with the United States, Canada, and Brazil leading the way. The forecast for 2025 remains unchanged, with an anticipated growth of 1.1 million bpd, primarily driven by the US, Brazil, and Norway.

OPEC’s report also notes a decline in production from countries involved in the Declaration of Cooperation (DoC). In August, these nations saw a reduction of 304,000 barrels per day, bringing their collective output to around 40.66 million barrels per day.

“This reduction is likely temporary, and we expect a recovery in the coming months,” said an OPEC source. “The overall market dynamics are shifting, and countries are adjusting their production accordingly.”

OPEC’s latest report on Nigeria’s oil production offers a glimpse into the nation’s growing role in the global oil market. As demand forecasts are adjusted and oil prices fluctuate, Nigeria’s resilience in maintaining and even increasing its production sets a positive tone for its economy.

With a global focus on supply and demand adjustments, OPEC continues to play a central role in shaping oil markets worldwide. As the organisation adapts to new realities, Nigeria’s position as Africa’s largest oil producer remains critical to its economic health and global oil strategies.