Nigeria has started earning more revenue as oil prices have continued to rise following the growing tension between Israel and Iran.
Oil price rose more than three per cent yesterday following the growing tension as Brent futures rose $2.26, or 3.07 per cent, to trade at $75.82 a barrel while U.S. West Texas Intermediate (WTI) crude skyrocketed by $2.38, or 3.42 per cent, to trade at $72.22, according to Reuters.
Both crude benchmarks had on Tuesday increased more than five per cent before closing around 2.5 per cent higher. The rising oil prices means Nigeria’s increasing crude oil outputs to OPEC have continued to translate to more revenue.
According to the Monthly Oil Market Report of OPEC for August, using direct communication, Nigeria’s crude supply increased from 1.307mbpd in July to 1.352mbpd in August, a rise of 45,000b/d.
Also Nigeria’s oil productions were 1.307million barrels per day (mbpd) in July; 1.276mbpd in June; 1.251mbpd in May; 1.281mbpd in April; 1.231mbpd in March; 1.322mbpd in February and January, 2024.
Israel and the United States (US) have vowed retaliation over Iran’s firing more than 180 ballistic missiles at Israel. But Iran said any Israeli response to the attack would be met with vast destruction.
Israel also had also ordered more soldiers and launched a ground battle against Lebanon to fight Iran-backed militant group Hezbollah.
Though there are growing international calls to de-escalate tensions, little or no results have been achieved. An oil broker with PVM, Tamas Varga, said: “Israeli and U.S. retaliation could include damaging or obliterating Iran’s oil facilities. Iran’s or its allies’ retaliation could strike Saudi oil facilities like in 2019 or see the closure of the Strait of Hormuz.
Any of these events would irretrievably send oil prices considerably higher.” ANZ analysts noted that oil output rose to a six-year high of 3.7 million barrels per day (bpd) in August. Capital Economics in a note warned of the consequences of the growing tension. “A major escalation by Iran risks bringing the U.S. into the war.
Iran accounts for about four per cent of global oil output, but an important consideration will be whether Saudi Arabia increases production if Iranian supplies are disrupted,” it said.
Meanwhile, the 56th meeting of the Joint Ministerial Monitoring Committee of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) yesterday reviewed the crude oil production data for July and August 2024 and current market conditions.