Oil prices at the international market plunge dropped more than three per cent on Thursday, June 30, following the spike in Nigeria’s production capacity.
Production in Nigeria has risen to about 1.9 million barrels per day (bpd) from 1.6 million, due to repairs and a lack of new major attacks on pipelines in the Delta region, the Nigerian National Petroleum Corporation said.
According to Reuters, the market jumped more than 25 per cent in the second quarter, as part of an 85 per cent rebound since hitting 12-year lows early in 2016, as unforeseen production cuts from Canada to Nigeria eased the glut that prompted the worst price rout in a generation.
Resurgent Nigerian supply will put pressure on prices, Goldman Sachs said, adding that outages caused by Canadian wildfires would virtually end by September.
OPEC’s oil output leaped in June to its highest in recent history, a Reuters’ survey showed, as Nigeria’s output partially recovers from militant attacks and Iran and Gulf members boost supplies.
Brent futures for August delivery, which expired on Thursday, June 30, settled down 93 cents, or 1.8 percent, at $49.68 a barrel.
