Oil prices drop as markets respond to OPEC’s output hikes
Oil prices continue dropping yesterday as markets digest the decision by the Organisation of Petroleum Exporting Countries and Allies (OPEC+) to implement another significant output increase in September, Daily Trust can report. This is coming amidst rising fuel price hike in Nigeria with retail stations belonging to the Nigerian National Petroleum Company Limited (NNPCL) selling […]
Oil prices continue dropping yesterday as markets digest the decision by the Organisation of Petroleum Exporting Countries and Allies (OPEC+) to implement another significant output increase in September, Daily Trust can report.
This is coming amidst rising fuel price hike in Nigeria with retail stations belonging to the Nigerian National Petroleum Company Limited (NNPCL) selling above N900 per litre.
Daily Trust reports that OPEC+ had confirmed another substantial production increase for September, continuing its rapid unwinding of voluntary output cuts despite tepid demand growth in Asia.
From $68 per barrel on Monday, Brent crude dropped to $67.68 Tuesday as the price volatility continues threatening Nigeria’s fiscal projection of $75 per barrel.
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OPEC+ countries agreed to raise September production by 547,000 b/d, marking a full expedited reversal of the oil group’s 2.2 million b/d voluntary cuts.
It cites robust summer demand and low commercial crude inventories globally as main reasons to unwind further.
Daily Trust reports that Nigeria is conspicuously missing from the key producers’ list despite being a major exporter in Africa.
In July, crude oil production crossed 1.8 million barrels of oil per day (MMBOPD), according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The CEO said the commission is also pursuing the project 1 “MMBOPD Incremental initiative with modest gains recorded owing to the multi-stakeholder collaborative approach adopted”.
“We are glad to report that we crossed the 1.8 MMBOPD mark on peak production last month, with average production hovering at 1.78 MMBOPD,” he said during a session at a conference in Lagos.