Oil production

Nigeria to cut oil production

Nigeria will cut its oil production by 1.9 million barrels per day. This will reduce its daily crude oil production to 1.412 million barrels.

Abuja is hoping for a $15 rebound in the price per barrel in the short term. This rebound that could bring at least 2.8 billion dollars to the country, according to its oil minister.

The decision comes after a historic agreement reached by OPEC members on Thursday. The latter agreed on a reduction in May and June of the world production up to 10 million barrels per day.

The aim is to help the price of black gold, which has fallen victim to the covid-19 pandemic to recover. This fall is suffocating the economies of African producers.

Countries have been forced to revise their current budget calculated on a reference price higher than the current prize. That’s below the 20 dollar mark.

Nigeria was expecting a barrel of oil at 57 dollars with a production of 2 million barrels per day.