Nigeria’s crude output up 51,000bpd to 1.28mbpd in April

Nigeria's crude oil production saw a significant increase of 51 thousand barrels to 1.28 million barrels in the month of April, according to data released by the Organization of the Petroleum Exporting Countries (OPEC). This rise comes as OPEC maintains its forecast for global oil demand to remain unchanged. Despite oil futures prices declining in the second half of the month due to heightened volatility and profit-taking from traders, the forecast for the year remains positive, with a projected total growth of about 2.2 million barrels per day, reaching 1.04 million by the end of this year. Chinnan Dikwal, the Vice Chair at the African Energy Council, joined CNBC Africa to discuss the implications of these trends. Dikwal highlighted the potential for $100 oil and the positive impact it would have on oil-producing states like Nigeria, whose fiscal break-even price stands at $77. He noted robust growth in oil demand driven by increased air travel and economic activities in countries like India, China, and the US. Looking ahead to the second half of the year, Dikwal expressed optimism for continued bullish momentum, particularly due to the upcoming 2024 election year. Despite some geopolitical tensions easing, concerns remain over potential supply disruptions, such as wildfires in Canada, which could impact oil prices. Additionally, market watchers are awaiting the release of the Consumer Price Index (CPI) data to gauge the Federal Reserve's monetary policy decisions and their effect on oil demand. In terms of African oil producers, Nigeria's production levels have shown improvement, reclaiming its position as a leading producer. Dikwal also highlighted Namibia's emerging significance in the oil market and the potential for the country to join OPEC, giving Africa a strategic edge in the industry. Nigeria's focus on meeting OPEC quotas and developing new production blocks like OML13 signals positive growth prospects, although questions linger about the sustainability of these initiatives and achieving the target of 2 million barrels per day by the end of the year. The Nigerian National Petroleum Corporation (NNPC) is actively engaging with investors to sell off oil blocks and offshore assets through bid rounds, presenting new opportunities for exploration and investment in the country's oil sector. While Nigeria has traditionally been a key player in the oil market, Dikwal emphasized the increasing competition from other oil-rich regions like Namibia, which are attracting international oil majors with their promising reserves. These developments underscore the evolving landscape of the global oil industry and the need for countries like Nigeria to stay competitive and innovative in attracting investment and maximizing production efficiency.