Reuters: Oil prices too low for Nigeria's needs, OPEC members too

Reuters: Oil prices too low for Nigeria's needs, OPEC members too

Saturday, August 16, 2014 11:45 am

A Reuters survey of members of the Organisation of Petroleum Exporting Countries, OPEC has shown that oil prices are now too low for most members to cover their spending needs.

The weighted average of oil prices collected by members of OPEC  was $106 a barrel last year. But oil prices are falling, and the OPEC crude oil basket price was just $100.88 a barrel on Wednesday. 

In 2013, Nigeria needed around $124 a barrel to meet its expenditure while Angola required less, $94 a barrel.

Meanwhile, West African price differentials were unchanged on Friday, with about 10 Nigerian cargoes still available, waiting for buyers.

A cargo of Escravos loading Sept. 9-10 changed hands, a trader said, but price details did not emerge.

A Bonga cargo for loading at the end of September and several Forcados cargoes were still on offer. The offer level for Forcados was still near dated Brent plus $1.30 a barrel on a fob basis.

Angola’s October programme is expected to be issued at the start of next week.

Asian refiners, particularly from China, increased their purchases of September-loading Angolan after a larger-than-usual amount went to Northwest Europe and the Mediterranean in the summer, another trader said.

Dalia and Plutonio were the main grades that went to Europe from the July and August programmes. Bitumen season, which is in the summer, was one of the drivers of demand, the second trader said.

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