New Telegraph

‘Nigeria unlikely to meet 1.61m bpd target’

Nigeria is not likely to raise its oil output in order to meet 1.61 million barrels per day target given it by the Organisation of Petroleum Exporting Countries (0PEC), due to constraints in its plans, the Chief Commodities Economist at the London-based Capital Economics, Caroline Bain, has said.

 

This was as the country managed to increase its production in September by 8,000 barrels per day, which shows an increase from 1.24 bpd recorded in August.

 

Though the country slightly increased its output to about 1.25 milliom barrels per day, the figure 360,000  barrels per day, lower than the quota given it by the Organisation of Petroleum Exporting Countries (OPEC) and it is not likely that Nigeria can raise its output to meet or surpass the cartel’s target, until crises caused by aggrieved sectional groups are nip in bud.

She said though the September output of some members state was  showing slight improvement, the development is still not clear whether OPEC can meet its target.

 

The body uses secondary sources to monitor its oil output, but also publishes a table of figures submitted to it by member countries.

 

According to secondary sources, Nigeria’s production increased to 1.45 millon bpd in September, from about 1.3 million bpd in August, compared to 0PEC quota of 1.61 million barrels per day. It would be recalled that oil prices have witnessed increase, a situation, which led to political pressures on the group to raise its quota.

 

Oil price rose to $85.07 per barrel last friday, a feat which is not only the highest in the last three years, but raised hopes for Nigeria, which relies on crude oil exports to run the economy

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