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Nigeria falls short as Libya becomes Africa’s biggest oil producer

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Factual Pursuit of Truth for Progress

Grace Cofie

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Nigeria loses status as Africa’s top oil producer to Libya due to decline in its crude oil production last month and supply disruption issues.

This was given in a new report by the Organization of the Petroleum Exporting Countries (OPEC) released on Wednesday.

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Nigeria told OPEC that its oil output fell to about 1.23 million barrels per day in October, which was from about 1.25 million barrels per day in the previous month.

According to OPEC, Libya saw its oil production rise to 1.24 million barrel per day in October from 1.16 million barrel per day in September.

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The 13-member oil cartel said its total crude production average 27.45 million barrel per day in October, higher by 220,000 about 1.40 million barrel per day in September.

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

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A London-based economic research firm, Capital Economics, said in a note that the increase in OPEC’s oil output in October was below its target of 400,000 barrels per day.

“Once again, Angola and Nigeria were largely responsible for this undershoot. Operational issues brought about by a lack of investment in oil-producing facilities continue to plague output in both countries, while Nigeria I also grappling with recurring militant attacks on key pipelines,

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“With these issues unlikely to be resolved soon, OPEC would probably continue to undershoot its planned increases in output in the months ahead.

“This will do little to alleviate the signs of undersupply in the oil market. Despite persistently undershooting its target, we doubt OPEC will make any major changes to its output policy at its next meeting on December 2. Admittedly, external pressure on the group has continued to grow, with the US now reportedly considering a release of oil stocks from its strategic reserve.”

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