The Organisation of Petroleum Exporting Countries (OPEC) and its associates have announced on Tuesday that they will return to the global oil market 400,000 barrels per day in the month of February.

OPEC+ has therefore decided to go by its plan on gradual output increase which was first decided in April, 2021.

In the new plan, Nigeria is expected to pump 1.7 million bpd in February.

Although, going by recent performances, the country might not be able to meet the target due to some undermining challenges.

Recall that Nigeria was projected to produce 1.86 million bpd in the country’s 2021 budget, the country recorded a deficit of almost 200 million barrels in the first 11 months of 2021, due to production challenges.

According to reports, the deadline for compensation over previous overproduction will be extended until June.
The alliance is scheduled to meet on February 2 to set production levels for March.

The decision on the output policy of 400,000 bpd monthly increment is driven by the group’s forecasters concerns over the impact on oil demand from the Omicron variant of Covid-19.

However, OPEC Secretary-General, Sanusi Barkindo, highlighted that world oil demand is believed to have grown 5.7 million bpd in 2021 and to grow by 4.2 million bpd in 2022.

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