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Oil price hits $80 per barrel, highest in 2018

OPEC puts demand at 100m bpd

By Udeme Akpan

THERE are indications that Nigeria and other major oil exporting nations will continue to generate adequate revenue from oil export in 2018 and beyond, as the Organisation of Petroleum Exporting Countries, OPEC, has put total world oil demand at over 100 million barrels per day, mb/d.

This was even as oil price rose from $78 to  $80 per barrel in the international market, the highest this year, yesterday.

While the price of light crudes, including Nigeria’s Bonny Light stood at $80, the price of Brent and West Texas Intermediate, WTI stood at $79.84 and $70.86 per barrel respectively.

 

In its latest market report sent to Vanguard yesterday, OPEC stated that the global demand would further rise to 100.23 mb/d, apparently the highest demand forecast to be made in recent times.

The report which did not envisage much supply threat from non-OPEC members stated: “Total non-OPEC supply for 2018 is now estimated at 59.56 mb/d. Non-OPEC oil supply in 2019 is forecast to grow by 2.15 mb/d. “The US, Brazil, Canada, and the UK are expected to be the main growth drivers, while Mexico and Norway remain to be the largest declines.    Non-OPEC supply is now forecast to average 61.71 mb/d for the year.”

It added, “Product Markets and Refining Operations Refinery margins at all main trading hubs recorded gains in August as several refinery outages prompted product supply disruptions, which led to strengthening at the top and middle of the barrel.

“In the US, product markets strengthened, supported mainly by higher product exports, particularly to Latin America. In Europe, declining Amsterdam-Rotterdam-Antwerp product inventories resulted in tighter product balances, which provided substantial support to refining margins. Meanwhile in Asia, refining margins strengthened on the back of lower refinery intakes caused by unplanned shutdowns and bullish market sentiment.”


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