Oil surging above $100 per barrel, but Nigeria is nowhere to be seen – Oil prices increased again on Friday, on track for a third weekly gain, although Nigeria, Africa’s largest producer, continues to suffer production issues.
Nigeria, hampered by weak management, has been unable to achieve its OPEC quota for more than two years and continues to face serious currency and revenue issues, with debt servicing consuming practically all state earnings.
Oil prices are rising faster than projected, as evidenced by Chinese economic data and reports of record oil use.
Brent crude futures were up 62 cents, or 0.7 percent, at $94.32 as of 2.49 a.m. GMT, while WTI crude in the United States was up 71 cents, or 0.8 percent, at $90.87.
Both benchmarks were up roughly 4% from a week ago.
China’s industrial output and retail sales increased at a faster-than-expected rate in August, indicating that the world’s second-largest economy’s recovery from the Covid-19 outbreak was stabilising.
According to National Bureau data issued on Friday, oil refinery processing reached a record 64.69 million tonnes in August, up 19.6% from the previous year and equal to 15.23 million barrels per day (bpd).
Refining throughput increased as Chinese processors maintained high run rates to accommodate summer travel demand and benefit on improving margins for exporting to Asian consumers.
“Betting on oil is becoming a popular Wall Street trade.” “No one doubts that the decision by Opec+ (oil-producing nations) at the end of last month will keep the oil market very tight in the fourth quarter,” Oanda analyst Edward Moya said.
The official record China’s refining rates are rising as output cuts by big producers Russia and Saudi Arabia raise supply concerns. Concerns over supplies have pushed Brent and WTI to their highest levels since November.
The International Energy Agency stated this week that continued oil supply curbs by Saudi Arabia and Russia will result in a market deficit throughout the fourth quarter.
