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Nigeria’s Daily Oil Production Rises to 2.16 Million Barrels



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  • Nigeria’s Daily Oil Production Rises to 2.16 Million Barrels

The nation’s production of crude oil, including condensate, rose to 2.16 million barrels per day last month, the highest level so far this year, the Ministry of Petroleum Resources has said.

Nigeria, Africa’s top oil producer with a maximum production capacity of 2.5 million bpd, had before now suffered declines in output largely on the back of security concerns in the Niger Delta.

The latest data obtained by our correspondent from the petroleum ministry showed that oil production in the country stood at 2.145 million bpd in August, up from 1.968 million bpd in July; 1.896 million bpd in June and 1.826 million in May.

The country produced 2.069 million bpd in April, 2.022 million bpd in March, 2.105 in February, and 2.070 million bpd in January, according to the ministry.

Nigerian crude oil has been under pressure from the persistent overhang of unsold cargoes, although this surplus could soon clear, given demand from Turkish and Asian refiners, according to Reuters.

At the last count, there were around 25 Nigerian oil cargoes left for sale from the October and November programmes, marking very little change over the last week.

India was said to have imported 336,500 bpd of Nigerian crude in September, 20.7 per cent more than in August, according to data from industry and shipping sources.

But highlighting the challenge to light, sweet West African crudes from the United States’ oil, Indian imports in September this year were nearly 40 per cent lower than those in September last year.

According to International Energy Agency, both global oil demand and supply are now close to new, historically significant peaks at 100 million bpd and neither shows signs of ceasing to grow any time soon.

The IEA, in a new report on Friday, noted that production had surged, led by the US shale revolution, and supported by big increases in Brazil, Canada and elsewhere.

“In future, a lot of potential supply could come to the market from places such as Iran, Iraq, Libya, Nigeria and Venezuela, if their various challenges can be overcome. There is no peak in sight for demand either,” it said.

The agency said the drivers of demand remained very powerful, with petrochemicals being a major factor.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site



Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.


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Crude Oil

Brent Crude Oil Approaches $70 Per Barrel on Friday



Crude oil

Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

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Crude Oil

Oil Jumps to $67.70 as OPEC+ Extends Production Cuts




Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.

OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.

Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”

Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.

Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.

Experts have started predicting $75 a barrel by April.

“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

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