Nigeria’s Brass River, Bonny Light, and Qua Iboe crude oils have surged above the Brent Crude benchmark due to supply concerns over Libya and a smaller-than-expected drop in U.S. crude inventories.
Brass River and Qua Iboe were trading at around $81.60 per barrel, higher than Brent’s $78 per barrel. Nigeria’s oil production has improved, boosting the economy, with GDP growing by 3.19% in Q2 2024.
The government aims for further growth, with daily oil production expected to reach 2 million barrels by year-end.
The Nigerian government, under President Bola Tinubu, has introduced economic reforms to attract foreign investment and increase oil production.
Oil and gas marketers support the government’s directive for the state oil company to sell crude in naira to Nigerian refineries, emphasizing the need to tackle smuggling and improve the economy by addressing agricultural and infrastructural challenges.
Meanwhile, oil prices are also supported by supply disruptions in Libya due to internal power struggles, potentially affecting OPEC+ production plans.