Nigeria’s crude oil prices experienced a slight dip to $86.53 per barrel, while maintaining their premium status amidst increasing global petroleum and fuel stocks. Specifically, Brass River and Qua Iboe benchmarks saw a decline of 59 basis points, settling at $86.53 per barrel. This decrease was observed late Tuesday, coinciding with Brent Crude trading at $82.5 per barrel, as reported by nairametrics.
Qua Iboe, produced by ExxonMobil from various offshore fields and exported via the Qua Iboe port, is highly favored by refiners due to its superior quality and low sulfur content.
The decline in Nigerian oil benchmarks can be attributed to indications of eased supply constraints and a reduction in global oil demand, particularly noticeable in the United States. Oil traders anticipate a drop of approximately 11.1 million barrels in crude stocks over the past week.
Furthermore, Nigeria’s crude oil prices have been influenced by cautious expectations ahead of the June 1 policy meeting, anticipating a potential reduction in production by OPEC+ and its affiliates.
According to recent OPEC data, Nigeria’s average daily oil production witnessed a decrease of 1.3 million barrels per day in February and a further 1.2 million bpd in March.
Concurrently, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is deliberating a compromise to expedite company departures while safeguarding the environment, local communities, and long-term assets. Gbenga Komolafe, President of NUPRC, presented companies with a set of expedited approval options contingent upon their commitment to spill cleanup and compensating affected local populations during a recent meeting.
