Brent sells at $79 pb in December vs $86.70 pb in October
By Jeph Ajobaju, Chief Copy Editor
Libya surged past all African oil producers in October but Nigeria regained top spot in November and will end 2021 on a high in earnings as its premium Brent Crude sells at $79 per barrel (pb) to close a tumultuous year.
Nigeria will make its biggest annual oil earnings in 12 years riding on global economic recovery from pandemic slump and producer restraint, despite record levels of infections throughout the world.
Brent crude futures was down 0.4 per cent at $79 per barrel (pb) at 7am on December 31. WTI crude futures slid 0.5 per cent at $76.6 pb. But Brent is expected to end the year up 53 per cent and WTI 57 per cent.
That would be the best year for either benchmark contract since 2009 when prices rose more than 70 per cent, according to Nairametrics.
Brent touched $86.70 pb in October, the highest since 2018, and WTI $85.41 pb, the highest since 2014.
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Nigerian grade types
Africa’s largest producer of crude oil and gas gets most of its crude from the Niger Delta, classified under two specifications based on its lightness and gravity, the heavier grade with a specification of 20-25 gravity.
Both Nigerian grade types, including the lighter 36-gravity one, are low in sulfur and paraffinic. Bonny light, Brass River, and Qua Iboe are examples of Nigerian grades.
Oil and gas sector contributes about 10 per cent of Nigeria’s Gross Domestic Product (GDP) and oil accounts for 86 per cent of it total exports, says the Organisation of Petroleum Exporting Countries (OPEC).
Nigeria’s crude oil production in November averaged 1.27 million barrels per day (mbpd), reclaiming the top spot among African oil producers.
Compared with the 1.228 mbpd produced on average in October 2021, this figure showed an increase of 47,000 barrels per day (bpd). Libya topped the African list with 1.24 mbpd in October but fell to 1.211 mbpd in November.
Oil prices have remained relatively high despite the Delta and Omicron variants of coronavirus forcing lockdowns and travel restrictions in most countries.
As coronavirus cases soar to new levels across the world, fuelled by the highly transmissible Omicron variant, oil prices collapsed on December 31 after rising for several consecutive days.
But Nigeria will still record gains.