Brent declined by 0.59% to $66pb driven by a surge in US crude production. President Trump has renewed pressure on OPEC to soften its production cuts as prices edge towards politically-sensitive levels in the U.S. However, the cartel is insistent on maintaining a tight oil market.
Oil prices have increased by 26.4% from $52.22pb to $66pb year-to-date after OPEC and its allies agreed to cut output for six months, starting in January. Nigeria was included in the production cut agreement. Consequently, domestic oil production has declined from 1.8mbpd to 1.65mbpd. This has negative implications on the country’s fiscal and export revenues.
The attached slides summarize the events that took place in the domestic and global commodity markets this week.
Enjoy your read!