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Nigeria to lose out from oil dollars, as OPEC+ raises production level

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OPEC and non-OPEC members on Wednesday agreed to increase the oil production quota by 400,000 (0.4 million) barrels per day.

This decision was reached at the 25th OPEC and non-OPEC Ministerial Meeting (ONOMM) in Vienna, Austria on Wednesday.

The increase in the production comes at a time oil is trading at above $90 per barrels and threat from US to open up its reserves.

In a statement issued after the meeting the members said: “In view of current oil market fundamentals and the consensus on the outlook, the OPEC and participating non-OPEC oil-producing countries in the Declaration of Cooperation (DoC) decided to:

“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of March 2022.”

It urged members to submit compensation plans as the 26th ONOMM holds on 2nd March 2022.

Read also: OPEC commends Buhari, National Assembly on PIB

According to the quota table, Nigeria has 1.718mbpd production capacity, rising from 1,318mbpd earlier although in the last few months the quota has not been met.

In summary, the 10 OPEC members were expected to deliver 25.061mbpd while the Non-OPEC members would produce 16.233mbpd making a total of 41.294mbpd capacity for the next one month by OPEC+.

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