Oil boom for Nigeria as prices hit $73.79 a barrel

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An improvement in Nigeria’s oil earnings is on course as prices held firm on Friday near three-year highs reached earlier this week as ongoing OPEC-led supply cuts, as well as strong demand, gradually draw down excess supplies.

Brent crude oil futures were up at $73.79 per barrel at 0440 GMT. US West Texas Intermediate (WTI) crude futures down 2 cents at $68.40 dollars a barrel.

Both Brent, which Nigeria produces, and WTI hit their highest levels since November 2014 on Thursday, at $74.75 and $69.56 per barrel respectively.

WTI is set for its second weekly gain.

Oil prices have been pushed up by a gradually tightening market.

Led by top exporter Saudi Arabia, the Organization of Petroleum Exporting Countries (OPEC), has been withholding production since 2017 to draw down a global supply overhang.

The tighter oil market is feeding into refined products.

Oil supply tightness is also a result of healthy oil demand.

Beyond OPEC’s supply management, crude prices have also been supported by an expectation that the United States will re-introduce sanctions on OPEC-member Iran.

© NAN

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