NIGERIA’s daily oil output has dropped by 150,000 barrels per day (bpd) as a result of the shutdown of Nembe Creek Trunk Line.
In its 2018 budget, the Federal Government had earlier projected to produce 2.3 million bpd at the reference price of $51 per barrel. But with this development the target would not likely be met. Already, Shell Petroleum Development Company of Nigeria Limited has declared a force majeure to protect itself against any liability with international oil traders and other stakeholders over the supply gap.
But the development has not yet impacted on the market as survey of the oil markets around the world showed that the price of Nigeria’s Bonny Light was still a little below $80 per barrel in the market yesterday.
The price of organisation of Petroleum Exporting countries, OPEC basket of 14 crudes stood at $76.75 a barrel, compared with $75.18 the previous day, according to OPEC Secretariat calculations. Investigation showed that despite increased government romance with stakeholders in the Niger Delta, the region has continued to record pockets of pipeline vandalism, meaning that oil operations may still under threats of disruptions.
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