Nigerian crude blends, including Bonny Light and Brass River, settled above $71 per barrel mid-week amid global market volatility. Meanwhile, Brent and U.S. West Texas Intermediate crude fell about 1%, as traders anticipated a weekend OPEC+ meeting where producers may raise output targets.OPEC+ will meet on Sunday to discuss further production increases in October as the group seeks to regain market share. While the market has absorbed earlier supply boosts during the third-quarter peak season, potential winter inventory build-ups could test oil prices. Previously, OPEC+ raised the UAE’s quota by 300,000 barrels per day and increased output targets by about 2.2 million barrels daily from April to September.
Middle Eastern oil prices have stayed the highest regionally despite rising production, boosting confidence among Saudi Arabia and other OPEC members considering further output increases. US crude stocks rose by 622,000 barrels for the week ending August 29, against expectations of a 2-million-barrel draw, with official government figures pending. Higher OPEC+ output and rising US inventories may put downward pressure on global prices, with Sunday’s meeting likely influencing whether Brent crude holds current levels or drops toward the lower $60s.
Nigeria met its 2025 fiscal revenue target in August, largely driven by non-oil exports, despite crude prices mostly staying below $70 per barrel. President Bola Tinubu highlighted the country’s fiscal stability, noting no borrowing was needed. Coordinated government efforts have nearly eliminated pipeline crude theft, boosting deliveries to export terminals. The oil regulator projects that crude production could exceed 2.5 million barrels per day next year, the highest since 2005. Nigeria has also become a major crude supplier to India, with monthly exports expected to surpass two million barrels by year-end.
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