Oil Prices Dip On Output Concern

• Oil Prices Dip On Output Concern

Global oil prices fell on Friday after reports showed some OPEC members will raise oil production to balance Iran deficit next month.

Brent crude oil, against which Nigeria’s oil is priced, declined $3.31 or 3.60 percent to $71.71 a barrel.

While the U.S West Texas Intermediate crude oil dipped by $2.18 or 3.34 percent to $63.03 percent.

The Friday pullback will put an end to the longest run of weekly gains in years if sustained next week.

In an effort to compel Iran to the table for renegotiation of the agreed nuclear deal signed by President Obama and other world powers in 2015, President Trump promised to remove Iranian waivers next month

The administration promised to bring Iranian exports to zero by not renewing the waivers given to eight countries to import crude oil from the embattled nation when they expire on May 2nd.

While experts expect this to impact global supplies and bolster oil prices following Venezuela sanctions and Libya civil war, President Trump has called on OPEC members already struggling to keep up with agreed production cuts to boost output to balance global oil market and stabilize prices.

“The end of the U.S. waivers on Iran exports will be offset by higher core-OPEC and Russia and as a result we do not expect further price upside, even if volatility is likely to increase in coming months,” U.S. bank Goldman Sachs said.