OPEC Increases Nigeria’s Quota

The Organisation of Petroleum Exporting Countries (OPEC), has increased Nigeria’s crude oil production quota from the 1.735 million barrels per day approved in April 2022 to 1.753 million barrels per day for May 2022.
The quota was increased on Thursday at its 27th OPEC and non-OPEC Ministerial Meeting, according to a statement from the organisation.
Nigeria has been unable to meet its targets even before the increase.
“Following the conclusion of the 27th OPEC and non-OPEC Ministerial Meeting, held via videoconference on March 31, 2022, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a well-balanced market and that current volatility is not caused by fundamentals, but by ongoing geopolitical developments,” the organisation stated.
The development comes on the heels of a 7 million per day loss recorded by the Organization due to the Russian/Ukraine war.
Sanusi Barkindo, Secretary-General for OPEC had disclosed at the 61st meeting of the Joint Technical Committee, that the potential loss of Russian oil and other liquid exports (around seven percent of current global demand), either through sanctions or voluntary actions, is already having major repercussions on energy markets.
“No matter how you crunch the numbers, there is simply no way to make up for a loss in volumes of this magnitude given the current demand outlook,” he said.
He noted that the last major supply disruption of this size, 5.6 million barrels/day, occurred in 1978 and 1979 during the Iranian Revolution.