International Energy Agency (IEA) expects crude oil export from Nigeria to fall this month, due to rising cases of theft on pipeline network across the country.
IEA, in its March monthly report released Wednesday, said that the resurgence in oil theft and illegal bunkering along pipelines and increased sectarian violence continued to destabilise the country’s crude oil export.
According to IEA, in January, production was down to two million barrel per day (mbpd), partly due to lingering technical problems following the shut-in of major crude streams in recent months.
“Force majeure on Qua Iboe crude exports was lifted in December, but ExxonMobil said in early February that cargoes would be delayed due to ongoing pipeline repairs. Nigeria has increased the operations of its security forces but militant and terrorist activities remained a major problem for operators.
“Total moved its staff from Nigeria’s capital, Abuja following the kidnapping of a French national in December, which was the first time staff were repatriated from the country”, the report stated.
Meanwhile, the reference basket of Organisation of Petroleum Exporting Countries (OPEC) reached $112.75 billion in the month of February, representing a gain of $3.47 over the previous month. As at March 11, the reference basket stood at $106.96 billion.
OPEC, which made this disclosure Wednesday in its March monthly report, put the January reference basket at $109.28 billion.
OPEC reference basket is a weighted average of prices for petroleum blends produced by OPEC countries.
OPEC reference basket is currently made up of Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
Also in the report, OPEC leaves 2013 global demand growth unchanged at 840,000bpd; trims economic growth forecasts for US, Eurozone; sees US oil supply reaching 28-year high this year.
OPEC said that the global oil demand growth could fall short of forecasts in 2013 due to economic weakness and US supply will hit its highest in three decades, curbing the need for oil from the 12-member producer group.
OPEC, in a monthly report left its forecast for growth in global oil consumption unchanged for now, still expecting an expansion of 840,000bpd this year.
“However, there are a number of downward risks to this growth. The euro’s instability could lead to even deeper recession in some Mediterranean countries.
“And the potential impact of a full budget cut in the U.S. could drag down the world economy, consequently reducing oil demand,” the report added.
OPEC expects the US economy to expand by 1.7 per cent in 2013, down from the 1.8 per cent previously thought. Growth in the eurozone is now seen contracting by 0.2 per cent, having earlier been expected to expand slightly.
According to the report, while the US economy continues recovering, it is mainly the sustained uncertainty about the budgetary negotiations in Congress that are holding back the momentum to continue at its full potential.
“The eurozone seems to continue to be significantly entangled in its sovereign debt crisis.”
OPEC, in the report also trimmed forecast demand for its own crude in 2013 by 70,000bpd due to rising supply from outside the 12-member group.
The non-OPEC supply growth will again be driven by the US, which is enjoying a shale energy boom. OPEC expects US oil supply to rise by 580,000bpd to 10.59mn bpd in 2013, which it said would be the highest since 1985.
OPEC’s own production rose by 74,000bpd in February to 30.31mn bpd, according to secondary sources cited by the report, led by higher output in Iraq and Saudi Arabia.
Nguardian
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