Report: Nigeria loses top spot to Libya as oil ouput suffers decline

Nigeria’s output declined further in October, losing the top spot to Libya amid persisting supply disruptions. 

This is according to the latest monthly oil market report released by the Organisation of the Petroleum Exporting Countries (OPEC) on Wednesday.

According to the report, Nigeria’s production declined sharply to 1.35 million barrels per day by 45,000 barrels per day (bpd) in October from about 1.40 million bpd in September.

The drop was the highest decline in production recorded by the cartel from its members in October, according to secondary sources.

Despite the drop, Nigeria reported directly to OPEC that its oil production fell to about 1.23 million barrels per day in October from about 1.25 million bpd in the preceding month, the cartel’s latest report said.

Libya, which overtook Angola as Africa’s second-highest oil producer in December, recorded an increase of 15,000 bpd to 1.16 million bpd in October, according to OPEC.

OPEC said oil output climbed mainly in Saudi Arabia, Venezuela, the UAE, and Kuwait while Nigeria, Gabon and Equatorial Guinea suffered a decline in its monthly oil production.

“According to secondary sources, total OPEC-13 crude oil production averaged 27.45 mb/d in October 2021, higher by 0.22 mb/d m-o-m,” it said.

“Crude oil output increased mainly in Saudi Arabia, Venezuela, the UAE, and Kuwait, while production in Nigeria, Gabon and Equatorial Guinea declined.”

Capital Economics, a London-based economic research firm, said that Nigeria and Angola instigated OPEC’s oil output in October, below its target of 400,000bpd.

The research firm said the decline in the two oil-producing nations in Africa were caused by lack of investment and recurring militant attacks on key pipelines in Nigeria.