Nigerian oil blends contracts settled above the $71 mark at the mid-week trading session amid market volatility in the global market
Price action showed Nigerian popular oil blends like Bonny Light, Brass River settled at $71.4 a barrel on Wednesday.
However, Brent crude fell 1% on Thursday, continuing the more than 2% drop from the previous session, as traders and investors anticipated an OPEC+ meeting over the weekend where producers would likely consider raising output targets once more. U.S. West Texas Intermediate crude dropped 1 per cent to $63.4 per barrel, while Brent crude also dropped 1 per cent, to trade at $67 a barrel.
OPEC+ plans to boost Crude Oil output
Eight members of the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, will discuss further production increases in October at a meeting on Sunday as the group looks to reclaim market share. The market appears to be adjusting to the supply increases rather well during the 3Q high season. However, possible inventory build-ups during the winter months will be the test for oil prices.” Markets do not currently perceive many positive drivers if geopolitical concerns remain contained.
OPEC+ had previously agreed to raise the United Arab Emirates’ quota by 300,000 barrels per day and to increase output targets by approximately 2.2 million barrels daily between April and September.
Middle Eastern oil prices have remained the highest regionally in recent months despite rapid production increases. A Haitong Securities report suggests that this has boosted confidence among Saudi Arabia and other countries
OPEC members to increase output further. Market observers are also monitoring US inventory data.
Crude oil stocks rose by 622,000 barrels for the week ending August 29, according to the American Petroleum Institute, countering the expected 2-million-barrel draw.
America’s official government figures are anticipated later Thursday following the US holiday. Increased OPEC+ output along with rising US inventories could intensify downward pressure on global benchmark prices, with Sunday’s meeting outcome determining whether Brent stabilizes around current levels or tests the lower $60 range in the coming weeks.
President Tinubu claims Nigeria is less reliant on Crude Oil
Nigeria’s president recently stated that Africa’s most populous economy met its revenue target for the fiscal year 2025, despite weakness in the crude oil market. Present Bola Tinubu claimed that the revenue target was met in August and that non-oil exports were the primary driver of this achievement.
Nigeria set the benchmark price for crude oil this year at $75 per barrel; prices oscillated below $70 per barrel for most of 2025. “I can stand here in front of you today and boast that Nigeria is not borrowing. “We achieved our annual revenue goal last month. We are stable, so let Trump do his worst.” The president added.
Nigeria’s state oil company, NNPC Limited, reports that coordinated efforts by intelligence and defense agencies have nearly eliminated pipeline crude oil theft. Three years ago, only about 30% of the crude transported through certain pipelines reached export terminals, costing Nigeria billions of dollars in lost revenue and delayed investments. Now, deliveries are nearly at capacity, and security has been strengthened across Nigeria’s oil infrastructure hub in the Niger Delta.
The Nigerian government stressed that both local actors and sophisticated international syndicates were targeted in the crackdown.
Nigeria’s oil regulator forecasts that, once crude oil production stabilizes, production could exceed 2.5 million barrels per day next year, the highest since 2005, restoring hope to the industry after years of disruption.
Nigeria has become India’s major source of crude oil as the President Trump’s administration pressured the Indian economy to reduce imports of Russian Oil. Africa’s largest oil producer’s monthly exports could surpass two million barrels by the end of the year.
