The nation’s crude oil production rose by eight per cent to 1.95 million barrels per day in July, data released on Friday by the Organisation of Petroleum Exporting Countries showed. OPEC, in its monthly oil market report for August, put Nigeria’s production in June at 1.80 million bpd, based on direct communication.
According to secondary sources, total OPEC’s preliminary crude oil production averaged 29.61 million bpd in July, lower by 246,000 bpd month-on-month. The group said, “In 2019, oil demand is anticipated to grow by 1.10 million barrels per day year-on-year, a downward revision of about 0.04 million bpd from the previous month’s projection, mainly due to weaker-than-expected oil demand data from OECD Americas, Other Asia and the Middle East in 1H19. “Total oil demand for the year is now anticipated to reach 99.92 million bpd. For 2020, world oil demand is expected to grow by 1.14 million bpd, in line with last month’s projection, with total world consumption anticipated to average 101.05 million bpd. This forecast is subject to downside risks stemming from uncertainties with regard to global economic development.
“The OECD region is estimated to be in positive territory in 2020 as OECD Americas is projected to show growth, while OECD Europe and OECD Asia Pacific are projected to decline. However, non-OECD countries are forecast to continue to account for most of the growth at 1.05 million bpd. China and Other Asia are anticipated to lead demand growth both in the non-OECD region.”
According to OPEC, in 2019, non-OPEC oil supply is anticipated to grow by 1.97 million bpd y-o-y, a downward revision of 72,000 bpd from the previous month’s projection, due to lower-than-expected oil production in the US, Brazil, Thailand and Norway in 1H19. These were partially offset by higher production in Canada in 2Q19. It said, “US liquids output in May was up by 53,000 bpd, despite a decline in crude oil production. However, US oil supply growth for 2019 was revised down to 1.87 million bpd, on lower revised historical production data. The US, Brazil, China and the UK are the key countries driving y-o-y growth in 2019, with mainly Mexico and Norway showing declines.”
The group said for 2020, non-OPEC oil supply growth was also revised down by 50,000 bpd from the last month assessment, and is now projected to grow by 2.39 million bpd y-o-y for an average 66.78 million bpd, mainly due to a downward revision in the oil supply growth forecast for Brazil. “The US, Brazil and Norway are forecast to be the main growth drivers, while Mexico, Indonesia and Egypt are expected to see the largest declines. OPEC NGLs production in 2019 and 2020 is expected to grow by 0.07 million bpd and 0.03 million bpd to average 4.84 million bpd and 4.87 million bpd, respectively,” it added. Punch