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Nigeria loses N101bn worth of oil, says OPEC

by Victorious
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Nigeria loses N101bn worth of oil, says OPEC

Nigeria loses N101bn worth of oil, says OPEC. According to information released on Thursday by the Organization of Petroleum Exporting Countries, Nigeria’s crude oil production fell by 2.3 million barrels in July 2022 compared to June.

According to OPEC’s most recent Monthly Oil Market Report for August 2022, direct communication data on crude oil production showed that Nigeria’s output decreased by an average of 74,000 barrels per day in July.

This suggests that the nation lost around 2.3 million barrels of crude oil throughout the course of the month of July’s 31 days. The organization added that during the month under examination, the average price of Brent crude, the world’s standard for oil, was $105.12 per barrel.

Nigeria loses N101bn worth of oil, says OPEC. Nigeria’s oil revenues decreased by around $241.1 million, or N101.13 billion, in July of this year as a result of the loss of 2.3 million barrels (at the official exchange rate of N419.37/$).

According to OPEC data, Nigeria produced 1.158 million barrels per day of oil in June 2022, but this number fell to 1.084 million barrels per day in July.

1.024 million barrels per day were produced in the nation in May of this year, according to OPEC data issued on Thursday.

Crude oil theft in the Niger Delta has often been blamed by the Federal Government, industry professionals, and operators as the main cause of Nigeria’s low output and ongoing inability to reach the monthly oil production target set by OPEC.

Dr. Muda Yusuf, the chief executive officer of the Centre for the Promotion of Private Enterprise, attributed the difficulties in the oil sector to the high level of insecurity present throughout the nation.

This, he claimed, had continued to deter investors from the market, resulting in decreased crude oil production and lower revenues for Nigeria despite the rise in the price of petroleum.

Investors in the oil and gas industry continue to bemoan the difficulties caused by insecurity, oil theft, erratic policies, and unsuitable fiscal regimes, he said.

The pricing structures and regulatory frameworks that continue to cloud the sector’s growth prospects have weighed heavily on the downstream sector.

Meanwhile, OPEC said that the cost of crude oil decreased in July compared to June, and that the price of petroleum in the OPEC Reference Basket decreased by $9.17 or 7.8% monthly in July to average $108.55/barrel.

“Despite a significant decline in liquidity, oil futures prices remained extremely erratic in July. The NYMEX WTI front month fell by $14.96 or 13.1% to average $99.38/barrel in July, while the ICE Brent front month fell by $12.38 or 10.5% to average $105.12/barrel.

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