Nigeria’s oil exports to exceed 2million bpd

Nigeria’s crude oil exports are expected to hit two million barrels per day (bpd) in August, the highest level planned for 17 months, as the nation’s oil industry nears a full recovery from militant attacks that crippled production last year.

Resurgent production, if sustained, will put further pressure on efforts by the Organisation of Petroleum Exporting Countries (OPEC) to cut output to shore up oil prices, Reuters said.

Meabnwhile, oil prices tumbled yesterday with West Texas Intermediate (WTI) crude prices dropping to a 7-month low, breaking through support levels. The market has been in a distinct bear trend since late May, losing nearly 16 per cent over this period.

The global oversupply theme has been driving the market lower, despite the OPEC and non-OPEC supply cut to boost price. OPEC and non-OPEC countries had agreement to curb supply by 1.8 million bpd by a further nine months but rising supply in the U.S., Nigeria and Libya, in addition to signs of demand decline in Asia, which is the biggest oil-consuming region in the world, have been weighing on crude prices.

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