Nigerian crude oil is holding steady at approximately $75 per barrel, despite recent fluctuations in global benchmark crude prices, which fell below $70 per barrel. The country’s oil production remains unstable, adding economic pressure.
Nigeria’s light-sweet crude oil blends, known for their low sulfur content and high quality, continue to attract traders. Key oil blends from Nigeria—such as Brass River, Bonny Light, and Qua Iboe—are trading above $74.50 per barrel, outperforming the Brent crude contract.
However, Nigeria’s oil output is inconsistent. According to the Organisation of the Petroleum Exporting Countries (OPEC) September Monthly Oil Market Report, production increased slightly from 1.307 million barrels per day in July to 1.352 million barrels per day in August. This 45,000-barrel-per-day rise contrasts with the Federal Government’s claims of production nearing 1.6 million barrels per day. Earlier this year, Nigeria’s output fell to 1.25 million barrels per day in May, despite the Nigerian National Petroleum Company Limited’s assertion of nearly 1.7 million barrels per day. OPEC’s data showed a decrease from 1.28 million barrels per day in April to 1.25 million barrels per day in May.
Global oil prices saw a rebound of over 1% on Wednesday, recovering from previous declines. Concerns over Hurricane Francine potentially disrupting U.S. oil production outweighed fears of weakening global demand. As of 0704 GMT, Brent crude futures increased by 84 cents, or 1.2%, to $70.03 per barrel, while U.S. crude futures rose by 81 cents, or 1.2%, to $66.56 per barrel.
Earlier in the week, both benchmarks experienced nearly a $3 drop, with Brent hitting its lowest level since December 2021 and West Texas Intermediate (WTI) reaching a low not seen since May 2023. This decline followed OPEC’s revision of its demand forecasts for 2024 and 2025, reducing the global oil demand growth estimate for 2024 from 2.11 million barrels per day to 2.03 million barrels per day, and for 2025 from 1.78 million barrels per day to 1.74 million barrels per day.
Meanwhile, China’s daily crude oil imports reached a record high last month, although they were 7% lower than the previous year and 3% below the same period last year, according to customs data and Reuters reports.
