Nigeria: Nigerian oil production rises in July
Latest reading: Brent crude oil prices averaged USD 69.56 per barrel in July, down 0.4% from June. On 31 July, the commodity traded at USD 72.58 per barrel, up 7.3% from 30 June. U.S. trade agreements with several countries boosted prices in recent weeks.
Turning to production, Nigerian oil output increased to 1.56 million barrels per day (mbpd) in July, from June’s downwardly revised 1.54 mbpd. Accordingly, output remained above Nigeria’s OPEC+ quota of 1.50 mbpd for the fourth consecutive month.
Outlook: Oil production is projected to rise in 2025 from 2024, reaching its highest level since 2020, though posting a smaller jump than last year. Rising capacity at the Dangote refinery will support crude demand in Nigeria, prompting an increase in production. However, the country is still expected to fall short of its OPEC+ quota of 1.50 mbpd, hampered by a precarious security situation and an uncertain domestic regulatory environment. Renewed turmoil in the oil-producing Niger Delta poses a key downside risk.