OPEC Oil Output Declines in January, as Nigeria, Iran Post Largest Drop in Crude Production
- OPEC oil production has declined for the second month in a row with daily production numbers down by 50,000bpd
- The major drivers of this decline are Nigeria and Iran, with major drops in their crude production and exports
- OPEC has also made announcements about when it will raise production output targets after addressing concerns
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
A new report has shown that the Organisation of the Petroleum Exporting Countries’ crude oil output dropped in January 2025.
This marks the second consecutive month of decline in oil output.
Oil exporting countries under the OPEC recorded 26.53 million barrels per day in January 2025, 50,000 bpd less than the figures reported the previous month.
The report shows that it was largely influenced by a significant drop in oil production from Nigeria and Iran. The drop in production from both countries counteracted the improvement recorded in the United Arab Emirates.
Source: Getty Images
UAE produced lower numbers in December 2024 due to field maintenance, and subsequently posted much better numbers in January 2025, according to Reuters.
Nigeria posts drop in crude oil production
Nigeria still struggles to meet the 1.5 million barrels per day quota given by OPEC, although there are talks about increasing production to 2 million barrels per day.
After recording 1.484 million barrels per day in December, production dropped by 60,000bpd to 1.42 million bpd in January 2024.
Reports from the PUNCH suggest that the increase in supply to local refineries might play a role in the lower export numbers.
For Iran, production also dropped by about 60,000bpd, while UAE reported the biggest increase of 90,000bpd in daily crude production after concluding its field maintenance in January 2025.
OPEC sticking to production cuts
OPEC will continue with earlier decisions to maintain production cuts till the end of Q1, 2025 due to concerns about global demand, and a rise in output from non-member countries.
OPEC said on Monday that it will likely raise outputs from April 2025.
While UAE and Iraq are still below their targets based on the December 2024 numbers, Libya’s output has grown by 40,000bpd and it may continue this path to recovery since it is not included in the production cuts.
Nigeria still combatting crude theft
Recall that Nigeria is still yet to eliminate crude theft. A recent NNPC anti-crude theft operation discovered more than 100 illegal refineries across different states within two weeks.
The operation also caught and disrupted almost 200 theft incidents. Some of the illegal refineries were discovered in Bayelsa, Abia and Rivers states.
OPEC against Nigeria's proposed 2Mbpd plan
Meanwhile, a recent Legit.ng report observed that Nigeria's plan to raise its daily crude output to 2.062 million barrels per day could lead to a clash with OPEC.
The report stated that Nigeria could be pressured to keep to the 1.5 million barrels per day crude oil quota assigned to it by OPEC.
Analysts say that the OPEC production limit helps keep global crude prices steady above $70 per barrel, as increased production could translate to higher supply and crash prices.
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Source: Legit.ng
