Nigeria, still Africa’s largest crude oil producer- OPEC

Nigeria retained its position as Africa’s largest producer of Petroleum in June, pumping 1,298 million barrels per day, while production in Angola, Algeria and Congo dropped during the period under review.

Secondary sources put Nigeria’s crude output at 1,249 million barrels per day last month while recording 1,184 million barrels for May.

According to the Organization of the Petroleum Exporting Countries (OPEC) Monthly Oil Market Report, Nigeria increased its production output compared to the 1,277 million barrels per day it pumped in May of 2023.

Angola followed next, with Direct Communication stating the country produced 1,102 million bpd in June, lower than the 1,148 million barrels reported the month before.

However, Secondary Sources said Angola’s crude oil output increased slightly in the review month, rising from 1,111 million barrels in May to 1,119 million bpd in June.

Algeria’s Direct Communication showed that production declined to 957,000 barrels, from 973,000 bpd in May, while Congo recorded a slight dip to 262,000 barrels bpd last month, from 266,000 barrels.

Meanwhile, according to OPEC’s secondary sources, “total OPEC-13 crude oil production averaged 28.19 mb/d in June 2023, higher by 91 tb/d m-o-m. Crude oil output increased mainly in IR Iran and Iraq, while production in Angola declined.”

According to OPEC, “Nigeria’s economy grew by 3.3 per cent in 2022, but is forecast to decelerate in 2023. Growth in the first quarter of 2023 stood at 2.4 per cent year-on-year in the first quarter of 2023, after growth of 3.6 per cent in the fourth quarter of 2022, an indicator for this year’s anticipated slowdown.

“The seasonally adjusted first quarter of 20231 GDP growth rate on a quarterly basis even contracted by 0.8 per cent. Weakening growth in the services, manufacturing, and agricultural sectors are developments to be considered in the 2023 growth trend.

“Moreover, high inflation continues to burden the economy. Inflation data for May shows an ongoing acceleration, with an annual rate of 22.4 per cent year-on-year, compared with 22.2 per cent in April and 22 per cent in March. Food inflation has been a key factor in this rise, reaching 24.8 per cent year-on-year in May, after 24.6 per cent in April and 24.5 per cent in March.

“Consequently, the Central Bank of Nigeria lifted the key policy rate by 50 bp to 18.5 per cent in May, but this policy rate has remained unchanged since. Despite the challenges, May’s Stanbic IBTC Bank Nigeria PMI held up well, retracting only slightly to stand at 52.3 in June, after 54 in May and 53.8 in April.”