Nigeria’s daily oil production falls to 1.99 million barrels

The nation’s crude oil production including condensate fell to 1.999 million barrels per day in January from 2.081 million barrels per day in December, according to the Ministry of Petroleum Resources.

The Organisation of Petroleum Exporting Countries, in its latest monthly oil report released on Tuesday, said Nigeria’s oil production dropped to 1.687 million barrels per day in January from 1.797 million barrels per day.

OPEC and 10 non-OPEC countries agreed in December to cut oil production by 1.2 million barrels per day effective from January for an initial period of six months to shore up what many expected to be weakening market fundamentals ahead.

With a reference level of 1.738 million barrels per day, Nigeria’s oil production was to be cut by 53,000 barrels to arrive at a new quota of 1.685 million barrels per day.

According to S&P Global Platts, OPEC has painted a bearish picture for 2019, with demand for its crude oil expected to fall due to weak demand growth and a sharp rise in output from producers outside the group.

The group’s 14 members pumped 30.81 million barrels per day in January, down from 31.60 million barrels per day in December, according to its Monthly Oil Market Report.

Oil prices have recovered since December, when they fell to a 15-month low, with ICE Brent trading above $62 per barrel this week.

OPEC’s research division estimates demand for its crude will average 30.62 million barrels per day in the first half of 2019, around 190,000 barrels per day lower than last month. Demand for OPEC crude in 2018 averaged 31.60 million barrels per day.

Demand growth in 2019 was revised down to 1.24 million barrels per day due to “lower economic expectations from OECD Americas, Europe, as well as Latin America and the Middle East,” the report said.