OPEC: Nigeria’s oil output dropped by 150,000 bpd in July

The Organisation of Petroleum Exporting Countries (OPEC) says Nigeria’s oil output dropped by an average of 150,000 barrels per day in July, supporting crude prices across the world.

In its monthly oil market report (MOMR), OPEC added that a weakness in the US dollar, which is the benchmark currency for the product also may have affected global markets.

“Price support has also come from a fall in Nigerian production of about 150 tb/d after a disruption in the Trans Niger pipeline and indications that some US producers are adjusting their spending plans,” OPEC said.

“July saw some additional weakness in the US dollar, ongoing strengthening in refining margins and improved perceptions of solid end-user demand, as well as encouraging economic indications regarding China via rising copper prices”.

Highlighting the Nigerian economy, OPEC said Stanbic IBTC production managers index (PMI) grew at its fastest pace in two years, signalling expansions in the economy.

“In Nigeria, the deceleration in GDP notably slowed from 1.6% y-o-y in 4Q16, to 0.6% in 1Q17, according to National Bureau of Statistics. Inflation somewhat eased to 16.1% y-o-y in June, from 16.3% in the previous month,” the report read.

“In a positive note, the country’s private sector registered fastest pace of growth in two years in July as suggested by the Stanbic IBTC Bank Nigeria PMI.

“The index jumped to 54.8 in July, from 52.9 in June because of fast pace of expansion in both output and new orders despite some decrease in for-export orders.”

Nigeria’s oil production however led the pack in Africa, at a production capacity of 1.748 million barrels per day, according to secondary sources.