The Organisation of the Petroleum Exporting Countries (OPEC), has predicted a much tighter oil market in 2019. OPEC has seen its production drop significantly during the first quarter of this year.
Reasons for the prediction by OPEC and fall in production
According to the Organisation of Petroleum Exporting Countries (OPEC’s) monthly oil market report released yesterday, April 10, 2019, the recent decline in production was led by curbs to Saudi Arabian output along with the dramatic and involuntary drops from sanctions-hit Venezuela.
However, the cartel reported that its crude production averaged 30.5 million barrels per day, which is about 0.4 million barrels per day higher than the demand for OPEC crude during the first quarter of 2019.
A look at Nigeria’s crude oil production
According to reports from secondary sources, Nigeria recorded 1.73 million barrels per day. Although, S&P Global Platts survey sets the nation’s production at 1.84 million barrels per day, down from 1.88 million barrels per day in February.
The reported output is about 0.4 million barrels per day lower than Federal Government’s main assumptions and micro-framework, based on the projection of 2.3million barrels per day oil production, a $60 per barrel oil price benchmark, and an exchange rate of N305 to a dollar in her 2019 budget.
The Organisation Of Petroleum Exporting Countries forecast for 2019 crude demand
Demand for OPEC crude for 2019 was revised down by 0.2 million barrels per day from the previous report of 30.5 million barrels per day to stand at 30.3 million barrels per day.
This revision is 1.1 million barrels per day lower than the 1.5 million barrels recorded for 2018, and 0.4 million barrels per day higher than the demand for OPEC crude for same period.