The Organization of the Petroleum Exporting Countries (OPEC) said it expects the global call for oil expansion to decline to 9.1 million barrels consistent with the day (b/d), extending the 100,000 bpd drop in its July forecast basically due to declining degrees of economy. activity in emerging economies.
However, next year’s call is expected to increase to 7 million b/d, OPEC said in its August report, unchanged from its July forecast.
Nigeria is a member of OPEC, with a crude oil production capacity of 2.5 million b/d. It is Africa’s largest oil manufacturer and the sixth largest oil manufacturer.
Last May, its crude oil production 1.436 million b/d. Although crude oil production has fluctuated significantly in recent months, it has tended to decline between June 2019 and May 2020.
On the other hand, OPEC raised its forecast of expansion in liquid production outside OPEC in 2020 to 235,000 barrels consistent with the day due to a better-than-expected recovery at the time of the year, leaving production on the right track for a year. annual drop of 3.03 million barrels consistent with the day.
The U.S. Energy Information Administration (EIA) raised its average spot value forecast for 2020 for Brent and West Texas Intermediate (WTI).
Based on its most recent short-term energy outlook (STEO), the EIA expects Brent spot-based to average $41.42 consistent with the barrel and the WTI spot with an average of $38.50 consistent with the barrel this year. In its previous STEO, the EIA projected that the Brent spot would average $40.50 consistent with the barrel and the WTI spot would average $37.55 consistent with the barrel this year.
In the longer term, the EIA expects Brent’s spot costs to average $49.53 according to the barrel in 2021, a small minimum from its 2021 past projection of $49.70 according to the barrel. WTI spot costs are expected to average $45.53 consistent with the barrel next year, also below the EIA’s previous forecast of $45.70 consistent with the barrel.
In its most recent STEO, the EIA stated that it expects higher stock levels and excess crude oil production capacity to restrict upward value tensions in the coming months. However, the organization added that as inventories decline in 2021, upward pressure on values will increase.
The EIA estimates that global liquid fuel inventories are rising at a rate of 6.4 million barrels consistent with the day (Mbpj) in the first part of this year and expects them to decline at a rate of 4.2 Mbop by the time of 2020 and 0.8 Mbpj in 2021.
The organization noted that its most recent STEO “continues to be subject to greater degrees of uncertainty as mitigation and reopening efforts similar to the new 2019 coronavirus disease (COVID-19) continue to evolve.”
As of August, 19.9 million cases of COVID-19 had been reported, with 732,499 deaths, according to the World Health Organization (WHO). The United States has recorded 4.9 million cases shown and 161547 deaths, according to WHO data.