Nigeria has officially dropped from November the price of all brands of oil exports. According to the price lists of the National oil Corporation of Nigeria, NNPC, export value of 20 of the 26 varieties, followed by watching Bloomberg has been reduced by at least 1 dollar per barrel.
More likely next month will drop the price of the main varieties of Nigerian Qua oil Cameroon as. If earlier it was sold for 1.07 dollars more expensive than Brent, then next month the discount will be 17 cents. This is the most significant decrease in the value of this brand of oil in 2014, says Bloomberg.
The difference between the price of raw materials of mark Bonny Light, which is included in the “basket” of OPEC and Brent is now 7 cents. Crude oil Forcados November will be sold with a discount of 41 cents relative to the North sea mix.
As stated by the Agency CEO division oil marketing in NNPC Mele Chiari, the decline in prices is caused by “huge excess of inventory.” Earlier this week, Chiari said that five companies, which are engaged in the implementation of the Nigerian oil complained of excessively high official of the export price. Yesterday, he said that the revision of price lists was not associated with these cases.
And really, the main reason for lower prices in another. Nigeria this year had severely cut oil production due to the frequent terrorist attacks on oil fields and pipelines. In the spring the level of production fell to 1.4 million barrels per day from 2 million b/d. Now the country is trying to get back on the volume of production, and at the same time, and that in the NNPC did not deny, to regain market share.
Oil Minister Emmanuel Cacique this week said that Nigeria will increase oil production to the end of 2016 by 22% to 2.2 million b/D. However, these additional volumes still need someone to buy. Therefore, in order to return temporarily occupied by other States of OPEC market share, Nigerians frankly dumping.
By the way, the oil cartel is ready to enter into the situation in Nigeria. That is why a preliminary agreement on the limitation of production, achieved at an informal meeting in Algeria on 28 September, the African country is not concerned. According to Cacique, the Algerian “Memorandum of intent” envisages for Nigeria the level of daily production ranging from 1.8 million to 2.2 million barrels.
