Price of Nigeria’s Bonny Light hits $71.73 per barrel as output stands at 1.344 mb/d
By Eyo Nsima
The price of Nigeria’s Bonny Light has risen to $71.73 per barrel from $70.60 recorded on Wednesday as the Organisation of Petroleum Exporting Countries, OPEC moves to achieve stability in the global market.
This showed over $31.73 per barrel, as Nigeria had based its 2021 budget on $40 per barrel and 1.86 mb/d, including Condensate, which is not captured by OPEC.
In its June Oil Market report, obtained by The Daily, www.thedaily-ng.com, Thursday, OPEC, stated that the country produced 1.344 mb/d, excluding Condensate, based on information obtained from direct sources.
The report also stated: “Total global oil demand is expected to average 90.6 mb/d. For 2021, world oil demand growth is kept unchanged at 6.0 mb/d, with total oil demand standing at 96.58 mb/d. OECD demand is revised slightly lower on an annualized basis, mainly reflecting lower-than-expected data from OECD Americas and Europe in 1Q21.
“However, initial data for April in both regions, as well as positive mobility developments given easing restriction measures and border openings, encouraged an upward revision to 2Q21 data. This offset most of the 1Q21 downward revision. In the non-OECD, oil demand was revised slightly higher, mainly due to positive 2Q21 data from the Middle East.”
It also stated: “For 2021, non-OPEC liquids supply is revised up by 0.1 mb/d from last month’s assessment, and is now forecast to grow by 0.8 mb/d to average 63.7 mb/d. This is mainly due to a faster-than-expected recovery in US liquids production of 2.5 mb/d in March.
“Additionally, the supply forecast for Norway, China, and Indonesia is also revised up, while the supply forecast in the UK, Brazil and Colombia is revised down. The main drivers for 2021 supply growth are anticipated to be Canada, Brazil, China and Norway, while US liquids supply is now expected to only grow by a marginal 0.03 mb/d y-o-y. US crude oil is actually forecast to decline y-o-y by 0.1 mb/d to 11.2 mb/d.”
