The Organization of Petroleum Exporting Countries (OPEC) reduced its crude oil production in March, ahead of its planned production increase for May, a new Bloomberg survey has indicated.

Nigeria was said to have recorded the largest cut as OPEC reduced its crude oil production for March to an average of 27.43 million barrels per day—a reduction of 110,000 bpd from the prior month.

According to the survey, Nigeria saw the largest decrease in production, by 50,000 bpd, to an average of 1.5 million bpd.

Though the production is still within the country’s approved quota, it was learnt that the cut was largely due to the fire on the Trans-Niger Pipeline.

An explosion rocked a section of the Trans Niger Pipeline in Bodo Community in Gonna Local Government Area of Rivers State.

The explosion was one of the reasons the President declared a state of emergency in the state while placing the Governor, Deputy Governor and lawmakers on suspension for six months.

Daily Trust reports that the Bola Ahmed Tinubu’s administration has set a target of 2.2m bpd for 2025 as contained in the 2025 budget.

The Nigerian Economic Summit Group (NESG) had said stability in oil producing states especially Rivers is critical to achieving the target.

Oil prices continue the upward trend, with Brent Crude trading at $74.45 per barrel as against $71.60 per barrel it started the month of March. The Federal Government projected $75 per barrel in the 2025 budget assumptions.

After Nigeria, Iraq recorded the next largest decline, of 40,000 bpd to 4.15 million bpd, although it is still above its quota of 4 million bpd.

While Iraq and Nigeria saw production decreases, the UAE’s production went in the opposite direction.

The UAE increased its production by 30,000 bpd to 3.33 million bpd, well over its quota, according to the survey.

 

The figures compiled by OPEC, however, show Iraq and the UAE are mostly in compliance.