The cut deal by the Organization of the Petroleum Exporting Countries and its allies is said to have ignited a decline in Nigeria’s crude oil output.
According to reports, crude oil production extended its decline to 1.32 million barrels per day in November amid skyrocketing petrol prices.
The latest data obtained from OPEC on Wednesday showed that Nigeria’s oil output dropped from 1.34 million bpd in October, based on direct communication.
According to secondary sources, total OPEC crude oil production averaged 25.11 million bpd in November, up by 0.71 million bpd in October.
“Crude oil output increased mainly in Libya and UAE, while production decreased primarily in Iraq,” the group said in its Monthly Oil Report for November.
OPEC and its allies, known as OPEC+, agreed in April to an output cut to offset a slump in demand and prices caused by the coronavirus crisis.
They decided to cut supply by a record 9.7 million bpd for May and June but the deal was extended in July by one month.
Members that did not implement 100 per cent of their production cuts in May and June, including Nigeria, were asked to make extra reductions from July to September to compensate for their failures.
The OPEC+ cuts of 9.7 million bpd were later scaled back to 7.7 million bpd from August through the end of the year.
Earlier this month, OPEC+ agreed to gradually increase their oil production by 500,000 bpd in January. The group also agreed to hold monthly meetings started from January to decide on further production adjustment until the total production increase reaches two million bpd.
They also agreed to extend the compensation period until the end of March 2021 to ensure full compensation of overproduction from all participating countries.