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Oil prices rise to $84 a barrel ahead of OPEC+ meeting

Oil prices rise to $84 a barrel ahead of OPEC+ meeting
November 01
16:25 2021

Oil prices continued to surge ahead of Thursday’s meeting of the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+).

Oil price increased by 1.36 percent to $84.71 for U.S. West Texas Intermediate (WTI), while the Brent crude jumped 1.36 percent to $84.86 at 2:16 pm (GMT+1). 

Historically, Brent oil price crossed the $85 mark in October for the first time in three years before falling back to $82 a barrel last Wednesday.

Reports said the oil demand skyrocketed amid the gradual increase in the production quota of the OPEC+ alliance after the outbreak of coronavirus disease plunged oil prices to a low as -$37.63 last year.

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Despite the rise in crude oil prices, payments for subsidy shortfall and low oil production continue to impact gains for Nigeria. 

On Thursday, OPEC+ will gather to review the benchmark for oil production.

Nigeria, one of Africa’s top producers, is struggling to boost output to the quota set by OPEC.

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In September, Nigeria’s oil production increased marginally to an average of 1.25 million barrels per day from 1.24 million the previous month. The country has been performing below the OPEC quota — from an average of 1.36 million barrels per day in January 2021 to 1.25 million b/d in September.

Last week, Shell Production Development Company (SPDC), Shell’s subsidiary in Nigeria, declared force majeure on Bonny Light crude oil loadings.

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