Nigeria's crude oil production up 85,000 barrels to 1.48mbpd in April

Nigeria's crude oil production has seen a notable increase, with data from the Organization of the Petroleum Exporting Countries revealing a rise of 85,000 barrels to 1.486 million barrels per day in April. This surge comes as the country introduces its new Obodo crude blend into the market. Chinnan Dikwal, Vice Chair at the African Energy Council, provided key insights into the global oil demand outlook and the evolving dynamics of the oil market during a recent discussion on CNBC Africa. Dikwal highlighted that the OPEC report maintains a steady forecast for global oil demand growth, with an expected increase of 1.3 million barrels per day year-on-year in 2025 and 1.4 million barrels per day in 2026. Despite the flat forecasts, Dikwal emphasized the underlying shifts within the industry. OPEC plus members are projected to ramp up production, while non-OPEC plus producers, including US shale operators, are anticipated to witness a decline in production. This trend is attributed to factors such as growing US inventories, upcoming oil cut rollbacks by OPEC, and market oversupply. In the context of OPEC's strategy, Dikwal highlighted a shift towards a focus on market share rather than oil prices. With the US promoting increased shale production, OPEC aims to oversupply the market to drive prices down, making it less lucrative for high-cost producers like US shale operators. This strategic approach underscores OPEC's emphasis on securing market dominance amidst evolving industry dynamics. Turning the spotlight on Nigeria, Dikwal discussed the country's recent production uptick and the significance of shipping its new Obodo crude blend. Despite Nigeria's production still falling short of desired levels, the growth trajectory is notable, marking a significant recovery from previous lows. The introduction of the Obodo blend, spearheaded by local player Con Oil, adds diversity to Nigeria's oil export portfolio, offering a wide range of options for global buyers. The emergence of the Obodo blend as the 27th variety from Nigeria underscores the nation's evolving oil market landscape and the role of indigenous players in driving innovation and market expansion. Dikwal expressed optimism about Nigeria's potential to further boost production under new leadership and urged a renewed focus on production enhancements amid ongoing industry developments. As the industry navigates market dynamics and production challenges, the discussion underscored the importance of prioritizing production growth and operational efficiency in driving Nigeria's oil sector forward. With a keen eye on market trends and strategic maneuvers, stakeholders are poised to capitalize on emerging opportunities and navigate the evolving global oil landscape.