Nigeria: Nigerian oil production ticks down in February
Latest reading: Brent crude oil prices averaged USD 69.41 per barrel in February, up 7.5% from January. On 27 February, the commodity traded at USD 72.55 per barrel, up 2.6% from 30 January.
Turning to production, Nigerian oil output ticked down to 1.46 million barrels per day (mbpd) in February from January’s 1.49 mbpd. Consequently, output fell short of Nigeria’s OPEC+ quota of 1.50 mbpd.
In other news, Nigeria has suspended the issuance of gasoline import licenses for a second straight month to prioritize local output; the shift highlights a stronger ?intent by the Nigerian authorities to protect domestic refining and marks a win ?for the Dangote Refinery—Africa’s largest. Moreover, Nigeria has urged Gulf states to invest in the nation’s untapped reserves to diversify oil supply and limit vulnerability to global shocks amid the U.S.-Iran conflict.
Outlook: This year, Nigerian oil production is seen falling short of both last year’s five-year high and its OPEC+ quota, as a fragile security situation and an uncertain domestic regulatory environment constrain production. Still, output should then pick up through 2028. Instability in the oil-producing Niger Delta region remains the main downside risk, while the conflict in the Middle East is key to monitor.