Oil prices dropped more than three per cent
yesterday due to return of Nigerian and Canadian
crude output from outages and as traders booked
profits at the end of the best quarter in seven
years.
yesterday due to return of Nigerian and Canadian
crude output from outages and as traders booked
profits at the end of the best quarter in seven
years.
According to Reuters, the market soared more than
25 per cent in the second quarter, as part of an 85
per cent rebound since hitting 12-year lows early
this year, as unplanned production cuts from
Canada to Nigeria eased the glut that prompted the
worst price rout in a generation.
However, production in Nigeria has risen to about
1.9 million barrels per day (bpd) from 1.6 million,
due to repairs and a lack of new major attacks on
pipelines in the Delta region, the Nigerian National
Petroleum Corporation said.
Resurgent Nigerian supply will put pressure on
prices, Goldman Sachs said, adding that outages
caused by Canadian wildfires would virtually end by
September.
OPEC’s oil output rose in June to its highest in
recent history, a Reuters’ survey showed, as
Nigeria’s output partially recovers from militant
attacks and Iran and Gulf members boost supplies.
Brent futures for August delivery, which expired
yesterday, settled down 93 cents, or 1.8 percent, at
$49.68 a barrel. The more active Brent contract for
September delivery settled at $49.71, down 3.1
percent.
