India to pay Nigeria $15bn
for oil exports The Punch reports that 20 out of 26 oil grades monitored by
Bloomberg revealed that the NNPC lowered its official selling prices by at
least $1 per barrel.
In a bid to woo more world
customers, the Nigerian National Petroleum Corporation (NNPC) has cut the price
of crude oil. This move is coming just two weeks after Saudi Arabia cut the
prices for November oil sales to Asia and Northwest Europe and for most grades
to other regions.
The selling price of Qua
Iboe for November was reduced to a 17 cent premium to the benchmark Dated
Brent, according to the price list, from $1.07.
Also, the price of Bonny
Light was reduced to a seven cent premium and Forcados to a 41 cent discount to
Dated Brent. Mele Kyari who is the Group General Manager for the oil-marketing
division of the NNPC said the reduction was to gain the market share. READ
ALSO: Economic recession: India to pay Nigeria $15bn for oil exports The rise
in militancy that has led to the destruction of oil and gas pipelines has
affected Nigeria’s oil production. EshanUl-Haq who is the principal consultant
at KBC
Process Technology Limited
said: “It is a bearish signal for the light, sweet market. In order to capture
a higher share of the market, official selling prices have to come down.”
Dr.Ibe Kachikwu who is the minister of state for petroleum said the country
would be exempt from any production cuts, though final details of such an
agreement have yet to be worked out. Meanwhile, the National Household Kerosene
Price Watch for September 2016 prepared by the National Bureau of Statistics
(NBS) has shown that oil marketers have refused to sell at approved price by
NNPC.
The marketers are selling
the commodity at N288.68 per litre as against the N150 per litre price that
NNPC approved. It reports further that despite the call by NNPC group managing
director, Maikanti Baru on petroleum marketers not to sell the commodity above
the approved price because issues surrounding the scarcity of kerosene had been
addressed, the sellers have remained adamant.
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