By Atoyebi Nike
Nigerian crude prices dipped early this week as OPEC+ signaled a modest production increase for November and northern Iraq restarted exports, raising fears of oversupply in the global market.
Bonny Light traded close to $69 a barrel after oil markets slumped sharply at the start of the week. Reports suggest that the eight OPEC+ members who had voluntarily cut output may roll out a production boost in November, while exports through Iraq’s northern pipeline resumed over the weekend.
The pressure adds to an already volatile market, with West Texas Intermediate (WTI) closing at $62.58 per barrel after a two-day selloff. Despite this, Nigeria’s crude supply to the $20 billion Dangote Refinery continues to expand under a two-year agreement with the Nigerian National Petroleum Company (NNPC). Deliveries rose to 300,000 barrels per day in September and October, with expectations that the refinery will end crude imports by year’s end and process up to 650,000 barrels daily at full capacity.
Since October 2024, NNPC has supplied 82 million barrels to Dangote Refinery, with 60 percent of transactions settled in naira part of efforts to ease pressure on Nigeria’s currency and stabilize fuel prices. The government describes the deal as a pilot that could later include other domestic refiners.
Meanwhile, OPEC+ confirmed a 137,000 bpd increase, with further hikes scheduled, as Russia’s crude exports hit a 16-month high. Traders warn of excess supply into Asia, where refiners face weaker demand from China due to maintenance and import quota limits.
Despite localized strong demand, global uncertainty continues to weigh on oil markets, with analysts predicting persistent price volatility into 2025.
