Global oil benchmark, Brent crude, struck a five-month low on Thursday as the United States’ crude inventories showed a lower-than-expected decline amid growing compliance with a deal to limit production by the Organisation of Petroleum Exporting Countries and other producers.
According to the secretariat of the Organisation of Petroleum Exporting Countries (OPEC), the average price of 13 variants of crude oil, including Nigeria’s Bonny Light, stood at $47.44 per barrel at the close of trading on Thursday.
OPEC daily basket price stood at $47.44 a barrel Thursday, 4 May 2017, compared with $48.34 the previous day.
Brent crude prices fell to as low as $46.64, to record the lowest trading point since November 30, 2016, while WTI touched down at $44.94 per barrel.
Analyst fear that a failure in the extension of OPEC oil cut deal will see oil run into $40 per barrel or worse, while the World Bank projects $55 per barrel, if the deal is extended.
Nigeria, which currently pumps about two million barrels of oil per day, is seeking to be exempt from the new OPEC deal, which would be considered at the next ordinary meeting in Vienna.