OPEC has reported a modest increase in Nigeria’s crude oil production for October, with output rising by 35,000 barrels per day (bpd), bringing total production to 1.085 million bpd for the month. According to the latest Monthly Oil Market Report (MOMR) released by the Organisation of Petroleum Exporting Countries (OPEC), Nigeria’s output grew from 1.399 million bpd in September to 1.434 million bpd in October, based on data from secondary sources.
However, direct communication from Nigeria indicated a slightly lower production figure, with the country’s average crude oil production for October reported at 1.333 million bpd, an increase of 9,000 bpd compared to the 1.324 million bpd recorded in September.
While Nigeria has seen a modest uptick in production, the global oil market is facing challenges. On the international front, oil prices dropped to a near two-week low following OPEC’s latest downward revision of its global demand growth forecast. Brent crude fell to $71.99 a barrel, and U.S. West Texas Intermediate (WTI) was priced at $68.16, marking a 5% decline over the past two sessions.
OPEC Cuts Demand Growth Forecast
In its latest report, OPEC downgraded its global oil demand growth forecast for 2024 to 1.82 million bpd, down from the previous estimate of 1.93 million bpd. This marks the fourth consecutive month in which the oil cartel has lowered its demand growth projections. The revision reflects weaker-than-expected consumption trends and signals challenges for oil producers, including OPEC and its allies like Russia, who had previously planned to raise production in December but have since postponed those plans due to falling oil prices.
The group also revised its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, indicating a continued slowing in global consumption. Despite these revisions, OPEC’s projections remain at the high end of industry estimates, with the International Energy Agency (IEA) forecasting a much lower outlook.
IPMAN in Talks with Dangote Refinery Over Petrol Pricing
In other industry news, the Independent Petroleum Marketers Association of Nigeria (IPMAN) announced that it is in ongoing discussions with the Dangote Refinery regarding pricing for petrol from the $20 billion refinery, located in Lagos. Yakubu Suleiman, National Assistant Secretary of IPMAN, said that talks have been productive, and the association is ready to begin lifting petroleum products from the refinery once an agreement is reached on pricing.
Suleiman noted that IPMAN is focused on ensuring affordable petroleum prices for Nigerians, and discussions with Dangote are centered on eliminating middlemen in the distribution process. “We are not a cartel,” Suleiman emphasized. “IPMAN is an association of marketers committed to serving Nigerians, and our goal is to ensure that the price of petrol is as low as possible for consumers.”
He added that once the price agreement is finalized, IPMAN President Abubakar Shettima would address the public to clarify the new rates, ensuring transparency in the process.
The development comes as Nigeria continues to seek ways to stabilize its petroleum sector and address ongoing challenges related to oil production, pricing, and refining capacity.
