Nigerian crude holds steady above $71 as market awaits OPEC+ decision
By Olakunle Oke
Nigerian crude grades maintained a strong footing above the $71 mark during mid-week trading, providing a measure of stability in a global oil market that continues to face volatility. Bonny Light and Brass River each settled at $71.40 per barrel, according to data from market trackers.
The resilience of Nigerian blends came as global benchmarks experienced renewed pressure. Brent crude slipped by 1 per cent on Thursday, trading at $67 per barrel, while U.S. West Texas Intermediate declined by the same margin to $63.40.
Traders and investors are monitoring the upcoming OPEC+ meeting set for Sunday, where the coalition of oil producers is anticipated to discuss another round of production increases. The proposal is being considered as part of ongoing efforts to recapture market share in the face of shifting global consumption patterns.
Earlier this year, OPEC+ authorised an increase of 300,000 barrels per day in the United Arab Emirates’ quota and pledged to lift collective output by 2.2 million barrels daily between April and September. Analysts say the market has largely absorbed these hikes, though the approaching winter season may put price resilience to the test.
Industry watchers caution that a combination of elevated OPEC+ production levels and swelling U.S. inventories could drag Brent prices closer to the lower $60 range in the coming weeks.
Despite global headwinds, Nigeria’s oil sector is showing renewed strength. President Bola Tinubu announced that the nation achieved its 2025 annual revenue target in August, even though crude has mostly traded below the government’s $75 benchmark. He credited growth in non-oil exports for filling the shortfall.
Tinubu also cited tighter security measures around oil infrastructure as a turning point for the sector. Figures from NNPC Limited indicate that coordinated action by intelligence services and security agencies has drastically curtailed crude theft in the Niger Delta, a problem that previously cost the country billions of dollars.
Three years ago, only 30 per cent of crude pumped through major pipelines reached export terminals. Today, NNPC reports that deliveries are near full capacity, restoring investor confidence in Nigeria’s energy industry.
Projections from the national regulator suggest that crude production could surpass 2.5 million barrels per day by next year, the highest level since 2005. This would signal a remarkable recovery for Africa’s leading producer after years of sabotage, underinvestment, and operational setbacks.
India has now emerged as Nigeria’s largest crude buyer, with exports to Asia expected to exceed two million barrels per month by the end of the year. This shift is partly attributed to U.S. pressure on New Delhi to reduce imports of Russian oil. For Nigeria, the forthcoming OPEC+ decision may determine whether recent gains can be consolidated or whether renewed market pressures will push prices back below comfort levels.