The Organisation of Petroleum Exporting Countries (OPEC) and its allies have announced that it would maintain its steady output increase by 400,000 barrels per day in November.
This is its highest since 2014.
OPEC further on Monday revealed tha Nigeria’s crude oil production slipped by 130,000 barrels per day in the third quarter of the year.
The International crude oil benchmark, Brent, traded 2.75 percent higher at $81.46 per barrel as of 3:43 pm Nigerian time on Monday, after the announcement by the Joint Ministerial Monitoring Committee, according to Oilprice.com.
According to Bloomberg, the meeting would be followed by a full ministerial gathering to review the recommendation.
The United States West Texas Intermediate rose by 2.52 percent to trade at $77.79 per barrel at the same time. Bloomberg said that data modeled by OPEC+ showed that demand would outstrip supply over the next two months. Yet, the alliance is unlikely to add more than the planned 400,000 barrels per day output.
According to OPEC’s monthly oil market report, Nigeria’s oil output dropped by 9.28 percent in Q3 2021 as average daily production dropped from 1.40 million barrels in June to 1.27 million barrels in August.
The average daily production in July was 1.39 million barrels per day. Despite the rise in oil prices during the period, Nigerian production kept declining.
According to experts, the possibility of production reaching 1.7 million barrels before the end of the year was unlikely, placing their estimates to the first quarter of 2022 instead.
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