Brace for tough times as fuel price increase looms - OPEC

This unsettling development is attributed to the Organisation of Petroleum Exporting Countries, OPEC's, predictions of stricter supply controls, compounding the challenges of a nation already dealing with soaring diesel and aviation fuel prices, nearing the critical ₦1,000 per litre mark.

This economic tremor is especially concerning for sectors such as manufacturing and aviation, which are already contending with significant challenges. The OPEC revelation came to light during the unveiling of its August report on Monday, September 11, 2023. According to the report, Nigeria's daily crude oil production has risen to 1,181 million barrels, marking an increase of 100,000 barrels when compared to July's output.

OPEC, in its report, projected a robust growth in global oil demand for 2023 and 2024, buoyed by the recovering economies of major nations. It anticipates a surge of 2.25 million barrels per day in global oil demand by 2024.

Edward Moya, a senior market analyst at data and analytics firm OANDA, commented on the situation, stating, "Crude prices are rallying after OPEC's monthly report showed the oil market is going to be a lot tighter than initially thought."

The voluntary production cut of 1.3 million barrels per day, which Saudi Arabia has extended, contrasts starkly with the compliance levels of most OPEC countries, Nigeria included, that have been consistently missing their production quotas.

Further complicating matters, Libya recently shuttered four of its eastern oil export terminals due to a severe storm, while Kazakhstan has witnessed a decline in its daily oil output, falling to 213,800 metric tons.