Bad News For Nigeria As OPEC Cuts It’s Oil Production Quota To 1.68 Million Barrels Per Day
Nigeria’s crude oil 2019 budget has become even more unrealistic following the Organisation of Petroleum Exporting Countries, OPEC new production cuts arrangements.
The 2019 budget is benchmarked on an oil production of 2.3 million barrels per day, bpd but now, the country is expected to cut its crude oil production by 3.04% to 1.685 million barrels bpd for the first half of next year.
This is part of efforts by the global oil cartel to reduce oversupply.
This isn’t coming entirely by surprise as OPEC countries, including Nigeria, and 10 non-OPEC countries, agreed earlier this month to cut oil production by 1.2 million bpd effective from January for an initial period of six months to shore up what many expect to be weakening market fundamentals ahead.
Nigeria, which was exempted from the previous cuts since January 2017, was asked to join the deal during the OPEC meeting on December 7 in Vienna.
Also Read: BUDGET 2019: 5 Things You Need To Know
With a reference level of 1.738 million bpd, Nigeria’s oil production is to be cut by 53,000 barrels to arrive at the new quota of 1.685 million bpd, according to a breakdown of member quotas under OPEC’s supply accord obtained by S&P Global Platts on Thursday.
OPEC kingpin, Saudi Arabia, has pledged to lower its crude oil output to 10.311 million bpd -a 322,000 bpd cut from its October level, the document prepared by OPEC’s secretariat showed.
The document showed that OPEC would shoulder 812,000 bpd of those cuts, while the non-OPEC participants would cut 383,000 bpd.
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