Nigeria’s crude oil blends contracts settled above $71 per barbell during mid-week trading session amid market volatility in the global market
Latest data from the global crude oil market indicated that on Wednesday Nigeria’s popular oil blends like Bonny Light, Brass River, closed at $71.4 per barrel.
Conversely, Brent crude oil fell 1% on Thursday, continuing the more than 2% drop from the previous session, as traders and investors anticipated an OPEC+ meeting over the weekend where producers would likely consider raising output targets once more.
This is even as the U.S. West Texas Intermediate (WTI) crude oil dropped 1 per cent to $63.4 per barrel, while Brent crude also dropped 1 per cent, to trade at $67 a barrel.
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Already, eight members of the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, are expected to discuss further production increases in October at a meeting on Sunday as the group looks to reclaim market share.
Currently, the global crude oil market seems to be adjusting to the supply increases rather well during the 3Q high season but industry experts anticipate that possible inventory build-ups during the winter months will be the test for oil prices.
It would be recalled that OPEC+ had previously agreed to raise the United Arab Emirates’ quota by 300,000 barrels per day and to increase output targets by approximately 2.2 million barrels daily between April and September.
As Middle Eastern oil prices have remained the highest regionally in recent months despite rapid production increases, analysts at Haitong Securities suggested that this had boosted confidence among Saudi Arabia and other countries
According to the report from American Petroleum Institute, crude oil stocks increased by 622,000 barrels for the week ending August 29, countering the expected 2-million-barrel draw.
