July’s oil market was marked by substantial price increases and significant movements in supply and demand dynamics. The global economy and refinery operations also displayed notable trends that are likely to impact the oil market in the near future.
Nigeria’s oil production in the month of July 2023 fell by 13.6 percent to an average of 1.08 million barrels per day compared to 1.25mbpd recorded in June, based on the latest data from the Nigerian Upstream Petroleum Regulatory Commission, [NUPRC].
Total export was reported as 33.52 million barrels as against 44.44 million barrels reported in June. This represents a month-on-month decline in the daily average oil production by 167.56 Kbpd, averaging at 1.08 million barrels per day [bpd].
Year-on-date, March remains the month with the highest oil export with a volume of 39.31 million barrels.
The volume of production is also significantly lower than the 1.7 million barrels per day quota allocated to the country by the Organisation of Petroleum Exporting Countries, OPEC. Nigeria remains one of the OPEC countries that is not able to meet its production targets.
Year-on-date, March remains the month with the highest oil export with a volume of 39.31 million barrels.
The crude oil spot prices rose significantly in July 2023, driven by higher futures prices, strong demand, and positive supply and demand dynamics. The OPEC Reference Basket (ORB) saw a substantial increase of $5.87 (a month-on-month increase of 7.8%), reaching an average of $81.06/bbl.
Brent and WTI crude oil prices rose significantly in July, with Brent averaging $5.27 higher (7.04%) at $80.11/bbl and WTI rising by $5.82 (8.28%) to average $76.07/bbl.
Bonnylight crude price also surged by 6.44% in July, to reach an average price of $82.27.
