The Organisation of Petroleum Exporting Countries (OPEC) reduced crude oil production last month, with curbs in Nigeria amounting to about 50,000 barrels per day, a major blow to the country’s aspirational 2.06 million bpd in the 2025 budget.
A Bloomberg survey showed that Nigeria cut production the most last month, reducing it by 50,000 bpd to an average of 1.5 million per day, in line with its quota. Loadings of the country’s Bonny Light crude grade also faced delays, following a fire at the Trans-Niger Pipeline.
In general, OPEC lowered output by 110,000 barrels a day to 27.43 million per day, according to the Bloomberg survey. The cartel’s leaders have urged members to remain committed to existing production quotas, which several countries continue to flout.
However, the OPEC data excludes condensate, which usually amounts to about 250,000 per day for Nigeria.
On March 17, a section of the Trans-Niger Pipeline, one of Nigeria’s biggest pipelines, exploded, after it was attacked by militants who had threatened to destroy Nigeria’s export as a result of a political problem in the oil-rich Rivers state.
The pipeline is crucial for oil transportation in the Niger Delta, one of the country’s biggest sources of oil. It carries over 450,000 barrels’ worth of oil per day, mostly to the Bonny Terminal in the federal state of Rivers.
The Renaissance Consortium-operated pipeline has frequently been the target of attacks by militants and saboteurs, which has resulted in significant revenue losses, prompting the government to take recent measures to halt the leakages.
In February, Nigeria self-reported a drop in crude oil production in February to the tune of 74,000 barrels per day, according to OPEC, raising grave concerns over the capacity of the country to fund its almost N55 trillion budget for 2025.
OPEC, in its Monthly Oil Market Report (MOMR) indicated that the country’s crude oil production declined from 1.54 million bpd in January to 1.47 million bpd in February, about 4.81 per cent decline.
But according to Bloomberg, led by Saudi Arabia and Russia, the OPEC+ alliance this month plans to start gradually restoring production that was idled for several years in a bid to shore up oil prices.
The shift came after President Donald Trump called on OPEC to “cut the price of oil” and, some delegates said, as the group’s leaders had grown impatient with members such as Kazakhstan persistently over-producing.
Iraq made the next-biggest cutback, curbing by 40,000 barrels a day to 4.15 million per day and moving slightly closer to its own agreed ceiling during the month under consideration. Still, Baghdad remains over its limit of 4 million barrels, and has made only limited progress with the additional cuts it pledged as compensation for over-producing.
The United Arab Emirates increased by 30,000 barrels per day to 3.33 million a day, further widening the excess over its agreed limit, according to the survey.
Data used by the OPEC secretariat, compiled from a range of external sources, shows both Iraq and the UAE largely in line with their agreed levels. OPEC+ is due to add roughly 138,000 barrels a day this month, the first in a sequence of incremental additions running through late 2026.
The alliance is due to decide in coming days on the next tranche, scheduled for May, and several delegates said they expect it will go ahead.
Meanwhile, oil prices steadied on Tuesday as threats by the US President, Donald Trump, to impose secondary tariffs on Russian oil and to attack Iran fed supply concerns, but a trade war fed worries that energy demand could slow.
Brent futures were down 4 cents, or 0.05 per cent, at $74.73 a barrel. The session high was above $75 a barrel. US West Texas Intermediate crude futures fell 6 cents, or 0.08 per cent, to $71.42. On Monday, the contracts settled at five-week highs, a report by Reuters said.
Trump on Sunday said he would impose secondary tariffs of 25 per cent to 50 per cent on Russian oil buyers if Moscow tried to block efforts to end the war in Ukraine.
Tariffs on buyers of oil from Russia, the world’s second largest oil exporter, would disrupt global supply and hurt Moscow’s biggest customers, China and India. Trump also threatened Iran with similar tariffs and also with bombings if Tehran did not reach an agreement with the White House over its nuclear programme.
A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.
Emmanuel Addeh
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