Crude oil prices yesterday were close to their lowest levels this year with soaring United States’ output undermining Organization of Petroleum Exporting Countries (OPEC’s) efforts to tighten markets and prop up prices, Vanguard reports.
Brent crude price was at $65.28 per barrel down 23 cents, or 0.4 percent, from the previous close. However, with the drop in crude price at $65.28 per barrel, Nigeria is not yet at risk over the funding of its N8.612 trillion 2018 budget. Nigeria’s 2018 budget is based on $45 per barrel and 2.3 million daily oil output.
Support yesterday came from the second outage in as many months on the 450,000 barrels per day Forties pipeline network, Britain’s biggest, which supplies much of the crude underpinning Brent futures. But the biggest market driver was US production which averaged above 10 million barrels per day (bpd) for the first time since the early 1970s last week, reaching 10.25 million bpd.