The country recorded the biggest increase in crude oil production last month among its peers in OPEC.
OPEC, in its monthly oil market report for March, said the country’s oil production rose by 63,000 barrels to 1.42 million bpd in February, based on direct communication.
Nigeria produced 1.49 million bpd in February, up by 161,000 barrels from 1.33 million bpd in January, according to secondary sources.
According to secondary sources, OPEC’s total crude oil production averaged 24.85 million bpd in February 2021, down by 0.65 million bpd month-on-month.
“Crude oil output increased mainly in Nigeria, Iraq, Iran IR, Venezuela and Libya, while production decreased primarily in Saudi Arabia and Angola,” the 13-member group said.
The report noted that as the COVID-19 pandemic had a major impact on the oil market balance, OPEC, together with its non-OPEC partners in the Declaration of Cooperation, took historic action to help stabilise the oil market.
It said, “This proactive stance turned out to be a very important element in supporting global economic growth, after an estimated drop in oil demand of 9.6 million bpd in 2020.
“Oil demand is forecast to recover in 2021, growing by 5.9 million bpd. However, this year’s demand growth will not be able to compensate for the major shortfall from 2020, as mobility is forecast to remain impaired throughout 2021.”
According to the group, non-OPEC supply is expected to have declined by 2.6 million bpd in 2020, while the growth of 0.95 million bpd is anticipated for 2021.
“However, as the impacts of COVID-19-related developments remain uncertain, continued responsible global policy action from all market participants, including the efforts undertaken by OPEC and the participating non-OPEC producers of the DoC, will continue to be crucial over the coming months to return markets to more stable conditions,” it added.
OPEC and its allies had earlier this month agreed to extend oil cuts by one month into April.
The group, at its 14th meeting on March 4, extended special thanks to Nigeria for achieving full conformity in January 2021, and compensating its entire overproduced volumes.
The ministers thanked the Minister of State for Petroleum Resources, Chief Timipre Sylva, for his shuttle diplomacy as special envoy of the JMMC to Congo, Equatorial Guinea, Gabon and South Sudan to discuss matters pertaining to conformity levels with the voluntary production adjustments and compensation of over-produced volumes.
They agreed to the request by several countries, which had not yet completed their compensation, for an extension of the compensation period until the end of July 2021.