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.
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’s oil revenues decreased by around $241.1 million, or N101.13 billion, in July of this year as a result of the loss of 2.3 million barrels (at the official exchange rate of N419.37/$).
According to OPEC data, Nigeria produced 1.158 million barrels per day of oil in June 2022, but this number fell to 1.084 million barrels per day in July.
1.024 million barrels per day were produced in the nation in May of this year, according to OPEC data issued on Thursday.
Crude oil theft in the Niger Delta has often been blamed by the Federal Government, industry professionals, and operators as the main cause of Nigeria’s low output and ongoing inability to reach the monthly oil production target set by OPEC.
Dr. Muda Yusuf, the chief executive officer of the Centre for the Promotion of Private Enterprise, attributed the difficulties in the oil sector to the high level of insecurity present throughout the nation.
This, he claimed, had continued to deter investors from the market, resulting in decreased crude oil production and lower revenues for Nigeria despite the rise in the price of petroleum.
He stated: “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.”
Meanwhile, OPEC said that the cost of crude oil decreased in July compared to June, and that the price of petroleum in the OPEC Reference Basket decreased by $9.17 or 7.8% monthly in July to average $108.55/barrel.
“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 per cent 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.