Nigerian oil producers have reportedly raked in $2.4304 billion in February 2021 from oil exports into the market, which is under the control of the Organisation of Petroleum Exporting Countries (OPEC).
According to reports, OPEC had also declared that Nigeria pumped 39.2 million barrels into the market in the 28 days of February based on 1.4 million barrels daily output.
Reports also showed that the average cost of crude oil in February stood at $62 per barrel. Based on the figure of $62 per barrel and that of 39.2 million barrels volume pushed into the OPEC market, the amount made from the market stood at $2.4304 billion.
Recall that OPEC put Nigeria’s February 2021 oil output at 1.4 million barrels per day, excluding condensate. This, according to the March Oil Market Report, showed a drop of 17.6 per cent when compared to the 1.7 mb/d produced in the corresponding period of 2020.
The cut in output is mainly driven by the quest of Nigeria to comply with OPEC oil reduction directive, targeted at achieving stability in the global market.
At the current price, Nigeria would not be under pressure to raise adequate funds for the execution of its 2021 budget, which was based on $40 per barrel and 1.8 mb/d.
The report stated: “For 2021, world oil demand is expected at 5.9 mb/d, to stand at 96.3 mb/d. Oil requirements in the first half (1H21) are adjusted lower, mainly due to extended measures to control COVID-19 in many key parts of Europe.”
In addition, elevated unemployment rates in the U.S. slowed the recovery process. “In contrast, oil demand in the second half (2H21) is adjusted higher, reflecting expectations for a stronger economic recovery with the positive impact of vaccination rollouts.
“In regional terms, OECD oil demand is expected to increase by 2.6 mb/d in 2021 to stand at 44.6 mb/d, while non- OECD demand is seen rising by 3.3 mb/d to average 51.6 mb/d.”
Meanwhile, the price of Brent and Nigeria’s Bonny Light, which had risen to $70 per barrel because of a recent drone attack on Saudi Arabia’s oil facility, has dropped to $69.31 and $66.03 per barrel respectively.
However, OPEC expects that the global oil demand would rise from 93.22 million barrels per day, mb/d to 97.94 mb/d, thus recording an increase of 5.06 per cent between the first and fourth quarter of 2021, as many countries continue to tackle the coronavirus crisis.
It stated that quarter-on-quarter (Q-o-Q), the global oil demand would stand at 93.22 mb/d in the first quarter (January – March) of 2021, showing an increase of 0.13 per cent compared to 93.10 mb/d recorded in the corresponding period of 2020.
It also showed that Q-o-Q, it would rise to 95.92 mb/d in the second quarter (April-June) of 2021, indicating an increase of 14.4 per cent, compared to 83.82 mb/d recorded in the corresponding period of 2020.
