By Adedapo Adesanya
Nigeria retained its status as Africa’s largest oil producer as its crude production rose by 45,000 barrels per day in August 2024, the latest data from the Organisation of the Petroleum Exporting Countries (OPEC) showed.
According to OPEC’s monthly oil market report for August, the country’s crude oil production increased by averaging at 1.352 million barrels a day versus 1.307 million barrels in July.
The figure above is based on direct communication with Nigerian authorities on crude oil production for the month.
However, it is still below the 1.78 million target that the country expects to fund the 2024 budget.
In comparison, secondary sources say Nigeria’s average crude oil production in August stood at 1.448 million barrels per day- an increase of 57,000 barrels daily when compared to 1.391 million daily posted in the previous month.
With Angola’s exit from the cartel, conflict-ridden Libya remains Nigeria’s closest competitor in OPEC as it came in second place with an average of 1 million barrels per day.
The North African country faced production challenges due to the shutdown of major oil fields during the month over revenue and its central bank issues.
In its forecast for global oil demand growth in 2024, OPEC also trimmed its expectations for this year and the next year, marking the producer group’s second consecutive downward revision.
The group in the report said world oil demand will rise by 2.03 million barrels per day in 2024, down from growth of 2.11 million barrels per day it expected last month.
This is partly due to differences over China and more broadly over the pace of the world’s transition to cleaner fuels. The reduction still leaves OPEC at the top end of industry estimates.
“Looking ahead, China’s economic growth is expected to remain well supported,” OPEC said in the report.
“However, headwinds in the real estate sector and the increasing penetration of LNG trucks and electric vehicles are likely to weigh on diesel and gasoline demand going forward.”
OPEC also cut its 2025 global demand growth estimate to 1.74 million barrels per day from 1.78 million barrels per day.