Business

OPEC: Nigeria lost 2.3m barrels of crude oil worth N101bn in July

The Organisation of Petroleum Exporting Countries (OPEC), on Thursday, revealed that Nigeria lost 2.3 million barrels in July 2022.

OPEC made the disclosure via its Oil Market Report for August 2022.

According to the OPEC’s data, Nigeria’s output dropped by an average of 74,000 barrels per day in July.

OPEC stated that crude oil production figures based on direct communication showed that Nigeria lost about 2.3 million barrels of crude oil cumulatively for July.

It further stated that the average cost of Brent crude, the global benchmark for oil, during the month under review was $105.12/barrel which means Nigeria lost $241.1m or N101.13bn (at the official exchange rate of N419.37/$) in the month under review.

The OPEC’s data showed that Nigeria’s oil production in June 2022 was 1.158 million barrels per day, but this dropped to 1.084 million barrels per day in July higher than in May, 1.024 million barrels per day.

The operators and experts have consistently fingered crude oil theft in the Niger Delta as the major reason for Nigeria’s consistent failure to meet its monthly oil production quota approved by OPEC.

The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, blamed the challenges in the oil sector on the high level of insecurity across the country.

According to Yusuf, the security situation discouraged investors in the sector, leading to lower production of crude oil and lower earnings for Nigeria despite the increased cost of crude oil.

“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,” he said.

Meanwhile, OPEC noted that crude oil prices dropped in July compared to June, saying the crude in OPEC Reference Basket fell by $9.17 or 7.8 per cent month-on-month 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.

The Star