Nige­ria’s Brent crude crosses $72 mark, pro­duc­tion hits 1.81mbpd

The Guardian (Nigeria) - - BUSINESS - By Rose­line Okere

NIGE­RIA’S Bonny Light crude oil price touched it’s high­est since 2014 at the week­end, sup­ported by Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries (OPEC) led pro­duc­tion cuts, and like­li­hood of the United States tak­ing mil­i­tary ac­tion in Syria in­creases.

Besides, Nige­ria’s crude oil pro­duc­tion in­creased from 1.792mbpd in Fe­bruar y to 1.810 mbpd in March.

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.

Also, the United State pledged re­cently that mis­siles would be fired at Syria and this is said to ha ve threat­ened crude oil sup­ply level thereby lead­ing to higher oil prices.

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 trad­ing hours on Fri­day.

Bonny Light oil is a high grade of Nige­rian crude oil pro­duced in the Niger Delta basin and named af­ter the pro­lific re­gion around the city of Bonny.

The very low sul­fur con­tent of Bonny Light crude makes it a highly de­sired grade for its low cor­ro­sive­ness to re­fin­ery in­fras­truc­ture and the lower en­v­i­ron- men­tal im­pact of its byprod­ucts in re­fin­ery ef­flu­ent.

The United States W est 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.

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