Nigeria failed to meet its crude oil target for January 2022, producing only 1.46 million barrels per day (bpd) compared to its initial target of 1.683 million bpd, missing its target by 15%. The Organization of Petroleum Exporting Countries (OPEC) sets the initial production target for member countries per time.
The Nigerian National Petroleum Company Limited (NNPC) and Federal Ministry of Petroleum Resources has stated that Nigeria’s inability to meet production target is caused by the delay in the full implementation of the Petroleum Industry Act and repeated oil vandalism.
The leading petroleum institutions in the country has also explained that the consequences of output shortfall has been significantly large including repeated plunge in oil earnings, leading to the monthly drop in the NNPC’s remittances
On Wednesday 2 February 2022, oil prices increased marginally as strong demand continues to elapse oil supply in the oil market. However, commodity investors are cautious of OPEC+ meeting later today.
Brent crude rose to 0.1%, to $89.27 a barrel by 07:43 GM, U.S. West Texas Intermediate crude was up 0.2%, at $88.34 a barrel.
In the Nigerian oil market, Bonny Light closed with a 0.66% gain to close at $91.08 a barrel while Nigeria’s crude products, Brass River and Qua Iboe both gained 0.1% to close at $91.29 per barrel.
Rigid global supplies and geopolitical tensions in Eastern Europe and the Middle East have spiked oil prices over 15% this year.
Reports suggest OPEC+ will likely maintain existing policies of average output increases on Wednesday, after , five sources from the producers’ group said even as it expects demand to rise to new peaks this year
According to reports from Reuters, Five OPEC+ sources said they expected the ministers to agree to go ahead with a planned increase of 400,000 barrels per day in March, despite high oil prices.
However, Goldman Sachs said there was a chance the oil market’s rally would prompt a faster ramp-up.