NNPC reduced the selling price of oil
The Nigerian National Petroleum Corporation(NNOC),
has reduced the price of every species of crude oil it sells in an effort to regain share of the global oil market amid continued supply glut and growing competition, according to the Punch newspaper.
This is becoming two weeks after Saudi Arabia, the world’s largest crude exporter, cut the prices for November oil sales to Asia and Northwest Europe, and for most grades to other regions.
The NNPC reduced its official selling prices by at least $1 per barrel for 20 out of 26 oil grades monitored by Bloomberg, according to pricing lists.
the Nigeria’s largest export of crude oil(Qua Iboe), under normal circumstances, was reduced by the most since 2014.
The NNPC cut the selling price of Qua Iboe for November to a 17 cent premium to the benchmark Dated Brent, according to the price list, from $1.07. It reduced the price of Bonny Light to a seven cent premium and Forcados to a 41 cent discount to Dated Brent.
The Group General Manager for the oil-marketing division of the NNPC, Mele Kyari, was quoted to have said that the price reductions were due to a “huge cargo overhang” as the country attempts to regain market share.
Like every other producer country, Nigeria is grappling with prices that are less than half of what they were in July 2014. Over the past few months, the upsurge in militant attacks has worsened the revenue woes plaguing the country, with export flows falling to the lowest in at least nine years earlier this year.
Shipments are gradually resuming, and lower prices are seen as a sign that Nigeria is seeking to become more competitive in an already oversupplied global market.CLICK HERE for more details
This is becoming two weeks after Saudi Arabia, the world’s largest crude exporter, cut the prices for November oil sales to Asia and Northwest Europe, and for most grades to other regions.
The NNPC reduced its official selling prices by at least $1 per barrel for 20 out of 26 oil grades monitored by Bloomberg, according to pricing lists.
the Nigeria’s largest export of crude oil(Qua Iboe), under normal circumstances, was reduced by the most since 2014.
The NNPC cut the selling price of Qua Iboe for November to a 17 cent premium to the benchmark Dated Brent, according to the price list, from $1.07. It reduced the price of Bonny Light to a seven cent premium and Forcados to a 41 cent discount to Dated Brent.
The Group General Manager for the oil-marketing division of the NNPC, Mele Kyari, was quoted to have said that the price reductions were due to a “huge cargo overhang” as the country attempts to regain market share.
Like every other producer country, Nigeria is grappling with prices that are less than half of what they were in July 2014. Over the past few months, the upsurge in militant attacks has worsened the revenue woes plaguing the country, with export flows falling to the lowest in at least nine years earlier this year.
Shipments are gradually resuming, and lower prices are seen as a sign that Nigeria is seeking to become more competitive in an already oversupplied global market.CLICK HERE for more details
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