Brent, the international benchmark for crude, fell below $100 per barrel on Tuesday as the latest figures released by the Organization of Petroleum Exporting Countries showed an increase in Nigeria’s oil production from 1.024 million barrels per day to 1.158mb/d.
Industry data indicated that Brent dropped in price by $7.72 or 7.21 per cent to close at $99.38 per barrel as at 7.45pm Nigerian time on Tuesday.
This came as figures from the OPEC Monthly Oil Market Report for July 2022 showed that Nigeria’s oil production increased by 134 million barrels per day in June 2022, according to crude oil production data obtained by OPEC from direct communication.
The report stated that Nigeria’s oil production in May 2022 was 1.024mb/d, but this moved up to 1.158mb/d in June.
However, figures from OPEC showed that the country had produced more crude oil in April this year, as its output at the time was 1.219mb/d.
OPEC further stated that crude oil spot prices rose in June, extending the previous month’s increase.
It said higher futures prices and strong physical crude market fundamentals drove the increase, amid higher crude demand from refiners and several supply disruptions.
“The OPEC Reference Basket rose $3.85, or 3.4 per cent, to settle at $117.72/barrel,” the organization stated in its latest report.
It added, “The ICE Brent front month increased by $5.54, or 4.9 per cent, in June to average $117.50/barrel and NYMEX WTI rose by $5.08, or 4.6 per cent, to average $114.34/barrel”.