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Crude prices in $100/pb rebound ahead OPEC summit

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…Nigeria’s quota nears 2m/bpd

PRICES of most crude oil brands, including Nigeria’s Bonny Light, yesterday, bounced to over $100 per barrel in the global market.

  The new rebound is coming ahead Organisation of Petroleum Exporting Countries (OPEC) meeting scheduled for Vienna, Austria on Saturday.

Consequently, the price of Bonny Light rose to over $100 per barrel, from $99 while the price of Brent rose to $101.8 per barrel, from $98 per barrel.

  While industry watchers say the rise in prices was fueled by expectation that the impending meeting would culminate in determining the group’s production strategy for September, apart from adopting other measures meant for stability in the volatile global market, others express fears that allies of the cartel including Russia may yet undermine the new harmony.

  The fear grows from the fact that until last week when the prices of many crudes crumbled, due mainly to the negative data from China which gave impression that the demand for crudes was easing, prices had consistently risen due to some factors, especially reopening of major economies after coronavirus lockdowns, Ukraine-Russian war and European Union ban on Russian oil.

  Meanwhile, OPEC has increased Nigeria’s oil quota to 1.830 million barrels per day, mb/d in September 2022, from 1.826 mb/d in August 2022.

  Explaining this as part of actions targeted at achieving increased stability in the global oil market, policy analysts doubt if Nigeria, currently producing about 1.4 mb/d, including condensate would meet its target because increased pipeline vandalism, oil theft and illegal refining in the Niger Delta.

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