Oil Price Rises Above $81, Highest In 3 Years

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…As Nigeria’s oil Production Suffers Setback

OIL prices jumped above $81 on Monday, the highest in three years.

This is even as organization of Petroleum Exporting Countries (OPEC) and its allied entities stated that it would continue to stick to its steady output increase.

According to Reuters report, Brent Crude, the international oil benchmark, rose by $1.98, or 2.5 percent to sell at $81.26 per a barrel, while the US, West Texas Intermediate (WTI) moved up by 2.29 per cent or $1.74 to trade at $77.62 per barrel.

In July, OPEC+ had an agreement to increase output by 400,000 barrels bpd each month till the month. Also, in its meeting held virtually on Monday, October 4, it still reconfirmed the upward adjustment of same monthly overall production, by November 2021.

The global increase in prices of oil is coming at a time when Nigeria is witnessing daily production decline.

According to OPEC report Nigeria’ oil production experienced a shortfall of 130,000 barrels per day in the third quarter 2021.

“Nigeria’s oil output dropped by 9.28 percent in Q3 2021 as average daily production dropped from 1.40 million barrels in June to 1.27 million barrels in August,” OPEC’s monthly oil market report in August.

The Nigeria National Petroleum Corporation (NNPC) had in its FAAC report for May which was done in August, highlighted some factors causing disruptions in oil production which include fire outbreaks, community clash or hostilities, coupled with occasional breakdown of oil facilities.