Nigeria may record some significant increases in oil revenue as analysts have predicted a spike in prices this week.
Brent crude, which traded at $104 per barrel late on Friday Friday may record further gains this week, leaping Nigeria’s weak revenue profile.
The next surge in prices could come this week after the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together known as OPEC+, on August 3.
OPEC+ sources told Reuters the group will consider keeping oil output unchanged for September, with two OPEC+ sources saying a modest increase would be discussed.
Recall that the National Chairman of Oil and Gas Host Communities, Prince Mike Emuh, has lamented the nation’s under-performance of crude oil production of 2.3 million barrels per day as set by OPEC.
He said the current under production of Nigeria’s oil and gas industry, which currently stands at 1.3 million barrels per day, was grossly inadequate, as well as it’s affecting the nation’s revenue generation given that Nigeria thrives on monolithic economy.
Speaking with journalists in Abuja on the plight of Nigeria’s oil industry, he attributed the ugly trend to pipeline vandalisation, which he claimed was being perpetrated by those he called “untouchables.”
Prince Emuh, who doubles as Chairman of Pipeline Imparted Communities of Nigeria revealed that over 200 pipelines were vandalised across the Niger Delta alone, saying that it was a serious sabotage that the Federal government must take a drastic step to end the crime.
Meanwhile, there are indications that decision not to raise output would dampen U.S. efforts to drive down domestic gasoline prices after U.S. President Joe Biden visited Saudi Arabia this month hoping to strike a deal.
U.S. West Texas Intermediate crude oil futures are trading higher on Friday on reports that OPEC and its allies will ignore President Biden’s request to boost supply at next week’s production meeting. A weaker U.S. Dollar and stronger risk sentiment is also lending support at the close of the week.
Crude oil traders have been reacting positively to the hope that U.S. monetary tightening would not be as hawkish as initially expected after disappointing economic growth figures were released on Thursday.