Effective January 1, 2019, Nigeria’s daily oil production will reduce to 1.7mn barrels following the Organisation of Petroleum Exporting Countries (OPEC) to cut 800,000 barrels, or 2.5 per cent of members daily output.
The drop is expected to remain in place for an initial six months period until June 2019.
Business Hilights gathered from a communiqué at the end of the 175th meeting of the 15-member oil group in Vienna, Austria last week Friday that the cut was subject to a review in April 2019.
According to OPEC, the latest cut, which would help stabilise and strengthen crude oil prices at the international oil market, would be based on members’ October oil production levels. Nigeria has consistently been producing below the 2.3 million barrels daily benchmark in the approved budgets, since 2016.
OPEC’s secretariat production data of member countries contained in the latest monthly oil market report published on Friday showed Nigeria’s daily oil production has maintained a low profile for years.
Analysts say the inclusion of Nigeria in the cut basket may be a source of concern in funding the last part of 2018 budget and the entire 2019 budget year considering the squeeze that will associate the cut inclusion.
