Nigeria’s progress in curbing militant attacks hasn’t much boosted its oil output. While that’s bad news for a country mired in its worst economic slump in 25 years, it’s making life easier for fellow OPEC members.

Africa’s largest economy was pumping about 1.5 million barrels a day late last month, 30 percent below what it was hoping to achieve and only a modest recovery from an almost 30-year low of 1.4 million in August. While peace efforts have curbed the frequency of attacks in the oil-rich Niger River delta, the Forcados export terminal, the country’s third largest, remains closed and shipments are down at many others.

If these disruptions persist they could have an unintended consequence: helping the Organization of Petroleum Exporting Countries boost oil prices.

“Bringing the Forcados loading terminal back into action is key for Nigeria’s exports,” said Charles Swabey, an oil and gas analyst at BMI Research, in an e-mail. If the government follows through on the peace process, then Nigeria could become “a drag” on OPEC’s push to rebalance the market, he said, “and will likely slow the process down.”

When OPEC and 11 other producers forged an accord in December to reduce their production to eliminate a global oversupply, conflict-prone Nigeria and Libya were exempt. So a significant production increase from either nation would make it harder for the group to fulfill its pledge to reduce output by almost 4 percent.

Amid signs that U.S. output is recovering and prices stalled in the mid $50s, the group can ill afford to have its own members diluting its historic deal. Global benchmark Brent was trading $54.80 a barrel, down 0.5 percent, as of 6:37 a.m. London time on Wednesday.

http://investorsking.com/nigeria-struggles-boost-oil-output-bloomberg/

This useless government will be claiming 2.2m barrel output. We have said it as long as APC remain in power, there is no oil in SS. Go to Chad or Niger. SS? No way. Kolewerk

dadavivo:
This useless government will be claiming 2.2m barrel output. We have said it as long as APC remain in power, there is no oil in SS. Go to Chad or Niger. SS? No way. Kolewerk

Then stop complaining about power supply & bad economy.

They want to continue bleeding SS dry. I thought oil has been found in Lagos, Borno, Bauchi, Sokoto etc. Why can't they go go drill oil there?