Nigeria, Libya, and Venezuela have experienced declines in crude oil production in October, falling short of the targeted output agreed upon by OPEC+. According to a report by Reuters, OPEC itself only added 30,000 barrels per day to its output in October, significantly lower than the 330,000 barrels per day increase in the previous month.
Nigeria’s oil production has been inconsistent, ranging from 1.3 million to 1.4 million barrels per day from January to June 2025. The country’s output increased to 1.5 million barrels per day in July but dropped to 1.4 million barrels per day in August and 1.3 million barrels per day in September, according to OPEC’s Monthly Oil Market Report. The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, attributed the decline in production to the crisis between the Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers.
Global oil prices have been affected by the decline in production, with Brent crude futures decreasing by 6 cents to $64.38 a barrel and US West Texas Intermediate crude down by 10 cents to $60.46. The OPEC Basket price also decreased by 0.26 cents to $66.72 per barrel. The decline in oil prices is attributed to a wider slump in financial markets and a strong US dollar, as well as concerns over supply and demand.
The American Petroleum Institute reported an increase in US crude stockpiles, which has put pressure on oil prices. Despite this, OPEC+ has agreed to increase output by 137,000 barrels per day in December, but has decided to pause further increases in the first quarter of 2026. However, analysts believe that this pause is unlikely to have a significant impact on oil prices in November and December.
The decline in oil production and prices has significant implications for the global energy market. As the demand for oil continues to evolve, OPEC+ will need to carefully balance production levels to meet the needs of the market. The current trends in oil production and prices will be closely watched by investors and industry experts, who will be looking for signs of stability and growth in the market.