The Organisation Petroleum Exporting Countries (OPEC) has expressed optimism that Nigeria will begin to import more petrol.
According to the OPEC monthly oil market report released on Wednesday, Nigeria’s oil production capacity dropped the most among OPEC members, while its gasoline (petrol) import has also been sliding.
“According to secondary sources, OPEC-14 crude oil production (following the rejoining of Gabon on 1 July), averaged 33.11 mb/d in July, an increase of 46 tb/d over the previous month,” the report read.
“Crude oil output increased mostly from Iraq, while production in Nigeria showed the largest drop.”
OPEC says Nigeria’s oil production went to 1.527 million barrels per day in July, from 1.379 million in June.
The oil cartel said the global gasoline (petrol) market continued weakening in July due to a lack of export opportunities, as high inventories reduced interest in imports.
“The gasoline crack spreads continued losing ground in July, as regional oversupply outweighed strong seasonal demand. Additional pressure came from increasing inventories in the region.
“Another bearish factor has been lower export opportunities to the Middle East and West Africa. The gasoline crack spread against Brent saw a drop of more than $4 from the previous month to average around $17.4/b.
“Strong export opportunities to Latin America could lend support to European gasoline, while exports to Nigeria are expected to pick up soon.”
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