As per OPEC’s latest monthly oil market report, Nigeria’s oil production increased from 1.38 million barrels per day in June 2016 to 1.527 million barrels per day in July 2016.
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A weaker dollar makes oil purchases cheaper for buyers using other currencies, potentially spurring demand.
Iraq has also scaled up oil production in recent months. A limit on production would bepositive for the market, Saudi Arabia’s Energy Minister Khalid Al-Falih said in an interview last week, while ruling out an actual cut to output. However, looking at Saudi Arabia’s oil production levels and its regional competition with Iran and Russian Federation, I had stated in my earlier article that any supply-related comment made by Saudi Arabia should not be taken too seriously.
“As oil approaches the upper end of the $40-50 range, we need confirmation that oil majors are heading towards an agreement to stabilise the market for oil prices to push higher”.
Iranian Oil Minister Bijan Zanganeh said his country wanted its pre-sanctions share of the crude market, in comments that suggested Tehran might not be on board with efforts in the OPEC cartel to agree on an output cap together with Russian Federation.
That increased drilling puts pressure on prices as traders fret over increased production in a market that has struggled to work through oversupply for roughly two years.
The greenback has been gaining rallying since Federal Reserve boss Janet Yellen on Friday signalled a possible hike in USA interest rates this year. In U.S. trading this morning, the futures price for worldwide Brent price of oil was down 1.3% at the open to $49.28 per barrel, and the U.S. WTI benchmark was down 1.5% to $46.95.
While representing only a fraction of the total production platforms in the region, BSEE said about 11 percent of the total regional oil production and 5.5 percent of the total gas production is idled because of the weather.
Iraq this week contributed to the intrigue building up in advance the September freeze talks of Organization of the Petroleum Exporting Countries (OPEC) members by declaring it will support a cap in oil production.
“We support freezing oil production by OPEC due to the sharp decline of oil prices”, Abadi said at a news conference, saying it would help government-salaried oil-industry workers.
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Members of the Organization of the Petroleum Exporting Countries are due to meet informally in Algeria on the sidelines of the International Energy Forum (IEF) on September 26-28.
