Oil Prices Plunge Below $50 a Barrel

Crude oil prices plunged below $50 a barrel, after data showed Nigerian oil production surged in June following repairs to infrastructure damaged by the militant.

Nigeria oil production stood at an average 1.53 million barrels a day in June, an increase of about 90,000 barrels a day when compared with May production.

The Brent crude oil lost 0.2 percent to $49.91 a barrel on Monday, according to Bloomberg energy quote.

Nigeria’s State Minister for Petroleum Resources, Emmanuel Kachikwu said the country was able to repair some pipelines after reaching a cease-fire agreement with the Niger Delta rebels.

So far this year, the Brent has gained 75 percent from a 12-year low recorded in January and currently trading at $49.89 a barrel as of 9:45 a.m. Sydney, Australia time.

While the US West Texas Intermediate oil has gained 85 percent year-on-year to $48.32 a barrel.

“Oil is looking quite resilient above the $45 a barrel level,” said Angus Nicholson, a markets analyst in Melbourne at IG Ltd. “It’s in a pretty steady trading band of roughly $50 at the top end, and $45 at the bottom end and that’s probably pretty comfortable for a lot of oil producers.”

The world’s biggest crude oil exporter Saudi Arabia reportedly increased production to 10.33 million barrels a day, adding about 70,000 barrels a day to cope with increase in electricity usage during the summer.