Nigeria has been ordered to reduce its crude oil production by 3.04 percent to 1.685 million barrels per day for the first half of next year.
This is according to OPEC in an effort to reduce oversupply.
OPEC, as well as the 10 non-OPEC countries, agreed earlier this month to cut oil production by 1.2 million bpd effective from January. This is as a direct response to what many experts are attributing to future market fundamentals that appear to be weakening.
Nigeria, which was exempted from the previous cuts since January 2017, was asked to join the deal during the OPEC meeting on December 7 in Vienna. With a reference level of 1.738 million bpd, Nigeria’s oil production is to be cut by 53,000 barrels to arrive at the new quota of 1.685 million bpd.
OPEC kingpin, Saudi Arabia, has also pledged to lower its crude oil output to 10.311 million bpd -a 322,000 bpd cut from its October level.
Also affected is Iraq, OPEC’s second highest producer. It will cut 141,000 bpd to reach an output level of 4.512 million bpd while the UAE will cut 96,000 bpd to average 3.072 million bpd.
Iran, Libya and Venezuela are exempted from the cuts.