Nigeria’s crude oil blends reached $71 per barrel during mid-week trading as market volatility continues to affect global pricing. Popular grades such as Bonny Light and Brass River traded at $71.4 a barrel on Wednesday, reflecting slight recovery despite recent global declines.
International crude prices remained under pressure. Brent crude dropped 1% on Thursday, extending a 2% decline from the previous session, while U.S. West Texas Intermediate fell to $63.4 per barrel. Traders are closely watching an upcoming OPEC+ meeting where production targets are expected to be discussed, possibly increasing output once again.
OPEC+ members have already adjusted quotas this year, including a 300,000-barrel daily increase for the UAE and additional 2.2 million barrels per day between April and September. Analysts note that market stability during the third-quarter peak season shows resilience, but winter inventory levels could affect pricing in the months ahead.
U.S. crude inventories rose by 622,000 barrels for the week ending August 29, slightly offsetting the anticipated 2-million-barrel drawdown. Market observers indicate that increased output from OPEC+ combined with growing U.S. stockpiles may continue to put downward pressure on global benchmark prices.
Despite the volatility, President Bola Tinubu emphasized that Nigeria has met its 2025 fiscal revenue target, largely due to non-oil exports. Nigeria’s benchmark crude price for the year was set at $75 per barrel, though prices remained below $70 for much of 2025. Tinubu also highlighted that Nigeria’s economy is stable and not reliant solely on crude oil.
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NNPC Limited reports that coordinated efforts by intelligence and defense agencies have significantly reduced crude oil theft across pipelines. Deliveries to export terminals are near capacity, marking a major improvement compared to three years ago when only 30% of transported crude reached the terminals.
Looking ahead, Nigeria’s oil regulator expects production could surpass 2.5 million barrels per day next year, the highest since 2005. Nigeria continues to be a major crude supplier to India, filling part of the gap left by reduced Russian oil imports.
Summary: Nigerian crude oil trades above $71 per barrel amid global market fluctuations, with OPEC+ considering further output increases. Despite price volatility, Nigeria has met its 2025 fiscal revenue target, and pipeline security improvements have significantly reduced theft. The country aims to increase production to over 2.5 million barrels per day next year.
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