Oil Production Crashes 24% below Benchmark, Price 41.77% above

Crude oil production has reduced 24 percent below the 2013 budget benchmark price, the lowest production levels in seven months. But the economy may have recouped the loss in production from the higher price. As at November, the Bonny version was $33 or 41.77 percent above the benchmark price of $79 per barrel. Generally, oil prices averaged $112 per barrel so far.
On the other hand, Nigeria’s production which fell short of its benchmark was 11.76 percent higher than the quota of the Organization of the Petroleum Exporting Countries (OPEC) of 1.7 million barrels per day (mbpd), said Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company (FDC) Limited.
The crude oil production from Nigeria, Africa’s biggest crude exporter, dropped to 1.89 million barrels per day in November, the lowest production level in seven months. The last time the country, which is targeting four million barrels per day production, produced at this new lowest level was in May 2013.
A global crude market survey of oil companies, producers and analysts by Reuters, which showed this dip in production, revealed that Nigeria lost an average of 100, 000 barrels per day in November. “Production is often disrupted by the crude theft and unrest in the Niger River delta, the country’s main oil-producing region,” the report reveals. It continues: “Output by the 12-member Organisation of Petroleum Exporting Countries decreased 245,000 barrels to an average 30.007 million barrels a day this month from 30.252 million in October, the survey showed. “The October total was revised lower by 369,000 barrels a day because of changes to the Nigeria, Saudi and Libyan estimates.” This came as the Department of Petroleum Resources (DPR) held a road show in Lagos for the 2013 Marginal fields’ bid round. Minister of Petroleum Resources, Diezani Alison-Madueke, had said that the bid round, which would be concluded in 2014, is to augment crude production in the country.

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