Nigeria’s Bonny Light crude oil grade slid below the $70 per barrel mark, reflecting rising domestic output that exceeded the Organisation of Petroleum Exporting Countries and allies’ (OPEC+) quota. The grade, which had traded as high as $75 in August, ended last week at $69.32 per barrel, representing a 1.23% weekly decline.
Global market data showed that the dip in Bonny Light contrasted with modest recoveries in other benchmarks. Brent crude rose 0.30% to $67.90 per barrel, while West Texas Intermediate (WTI) advanced 0.08% to $63.48. Analysts linked the mixed market performance to renewed supply-side risks triggered by geopolitical tensions, positive inventory reports, and fresh demand optimism.
Cowry Asset Limited noted that sentiment turned cautiously bullish despite earlier selling pressure, with oil prices swinging amid peace talks and global security concerns.
Meanwhile, Nigeria’s external reserves climbed 0.56% week-on-week to $41.07 billion – the highest since December 2021 – strengthening the country’s buffer against external shocks and easing near-term pressure on the naira.
Nigeria’s oil output continued to outpace its OPEC+ allocation for the second month, averaging 1.50 million barrels per day in July. Analysts attributed the rebound to improved security in the Niger Delta and renewed investment by indigenous operators who acquired divested assets from international oil firms.
Cordros Capital projected that production could remain slightly above quota through year-end, supported by stronger security measures and gradual sector recovery. However, risks related to pipeline security and infrastructure bottlenecks could still weigh on future gains.
