Nigeria profiting from Syrian debacle as Brent crude crosses $72 mark
London, April 17, 2018 (AltAfrika)-Nigerian economy is profiting from the Syrian debacle as Bonny Light crude oil price has skyrocketed, Crossing $72 mark, it’s highest price since 2014 at the weekend. Nigerian Guardian reports.
This is further aided by Organisation of the Petroleum Exporting Countries (OPEC) led production cuts.
Besides, Nigeria’s crude oil production increased from 1.792mbpd in February to 1.810 mbpd in March as OPEC and allies including Russia are keeping crude oil supply limits in place in 2018, to reduce a price-denting glut of oil held in inventories.
Nigeria’s Bonny Light attained its highest level at $72.73 a barrel, a little lower than Brent crude oil, which sold for $72.58 per barrels during the final trading hours last week.
The United States West Texas Intermediate (WTI) crude oil also hits $67.39 per barrel at the weekend.In March, the OPEC Reference Basket (ORB) increased by less than 0.5 per cent to $63.76 per barrel. Oil futures ended about one per cent higher in a relatively volatile month, following US equity market movements and supported by robust oil demand growth forecasts, tightening US crude stocks and geopolitical tensions.
For the month, the Dubai structure flipped back into contango, while Brent and WTI structure remained in backwardation, albeit at a reduced level before the latest price surge.
OPEC crude oil production dropped by over 201,000 barrels per day in March over the previous months, while production mainly decreased in Angola, Venezuela, Algeria and Saudi Arabia.
This OPEC said has been partially offset by higher production in the United Arab Emirates, according to the organisation’s latest crude oil report.OPEC expects the demand for its crude oil to be at 32.6 million barrels per day (bpd), 0.3 mbpd lower than in 2017.
He stated: “Our economies are increasingly interwoven. We must build on our common ground to face upcoming challenges together, strive for sustainable market stability and safeguard future energy security through our ongoing effective cooperation. The irreversible forces of globalization will continue to shape this energy transition.
“We have, through the Declaration of Cooperation, which has become a permanent feature on the global energy scene, established a new framework for producing countries, taking into account the strategic interests of consumer countries as well as the world economy.”
Minister of Petroleum Resources, Dr. Ibe Kachikwu urged OPEC countries to work hard and become least-cost oil producer, saying that if shale oil can produce and sell at $65 per barrel, there was absolutely no reason why Nigeria and other OPEC members’ country should be struggling.He said: “Shale is going to active. We know that whenever we are in excess of $65 per barrel, shale gets very active because the fundamentals become much more supportive to more investments and more production lines.”