…as Bonny Light steady at $65.31 per barrel
By Prince Okafor
The Nation’s crude oil output slipped by 95, 000 bpd last month, as price of its Bonny Light crude surge to $65.31 per barrel in the international market.
The nation’s production which stood at 1.664 million barrel per day in November 2019, witnessed a significant to 1.570 million per barrel in the last month of 2019, translating to decline of 95,000 barrel per day/
The production decline further jeopardises the budget 2020 revenue projections of the Federal Government, which is predicated on crude oil production of 2.18 barrels per day.
According to the Organisation of Petroleum Exporting Countries, OPEC, latest oil market report released yesterday, crude oil production averaged 29.44 mb/d in December, lower by 161 thousand barrel per day, month on month.
“Crude oil output increased mainly in Angola, while production decreased in Saudi Arabia, Iraq and the United Arab Emirate, UAE.”
The report noted that, preliminary data indicates that the global oil supply in December decreased by 0.06 mb/d to average 100.28 mb/d, compared with the previous month.
“Non-OPEC supply (including OPEC NGLs) increased by 0.11 mb/d compared with the previous month to average 70.84 mb/d in December, higher by 1.55 mb/d year on year. “Preliminary incremental production in December was mainly driven by the UK, Norway, Canada, Mexico and the US. The share of OPEC crude oil in total global production decreased by 0.1 pp to 29.4% in December compared with the previous month.
Estimates are based on preliminary data from direct communication for non-OPEC supply, OPEC NGLs and non-conventional oil, while estimates for OPEC crude production are based on secondary sources,” the report added.
Meanwhile, price of Bonny Light yesterday stood at $65.31 per barrel, an increase of 0.58 cent in the oil market. Also, Brent crude traded at $64.13 a barrel, while West Texas Intermediate, WTI, at $57.92 a barrel.
Moreso, there seems to be a growing concern that, Iran is preparing to send the price of crude to $100 per barrel, following its retaliation to the United State, over the assassination of the most important man in the most volatile regime in the Middle East.
A report obtained from Oilprice.com, shows that, two of Saudi Arabia’s key oil sites are attacked and its oil production is more than halved but the $70-75 per barrel of Brent oil barrier holds firm.
It was gathered that, Iran retaliates with missile attacks against the U.S. base [Ain al-Assad] in Iraq but the cap remains unbreached. The U.S. has gone to great lengths to put a serious lid on the oil price at this US$70-75 per barrel of Brent level for the economic political reasons analysed below, supported by a variety of means also examined below.
“But retaliatory moves being planned by Iran for the execution of Major General Qassem Soleimani by the U.S. might blow through the cap and even through the key $100 per barrel of Brent resistance level.”