• Global geopolitical series: nigerian Oil facilities might face militant attacks soon

    Source: FxWire Pro - Commentary / 18 Jan 2018 03:20:45   Eastern Standard Time

    Nigeria’s oil-rich delta and oil facilities, which were rocked by several severe militant attacks in 2016, might once again face series of attacks as the Nigerian Delta Avengers (NDA) announced intentions to unleash the deadliest round of attacks on Nigeria’s oil sector and that is few days’ time. A statement published on NDA’s official website suggests so.

    Here is a link to the statement, http://www.nigerdeltaavengers.org/2018/01/happy-doomed-year-nigeria-get-ready-for.html#more

    Throughout 2017, in the absence of significant militant attacks, Nigeria managed to gradually increase its crude oil production. Nigeria’s steady increase in production troubled OPEC members since both Libya and Nigeria were exempted from production cuts. However, both Nigeria and fellow African producer Libya agreed to cap their production for 2018 at 2017 levels at the November 2017 OPEC/N-OPEC meeting so as not to spoil OPEC’s efforts.  

    As of latest OPEC report, Nigeria is producing around 1.8 million barrels per day, however, due to NDA attacks in 2016, the production was as low as 1.4 million barrels per day. If NDA carries out similar attacks a sharp drop in Nigerian production could lead to a further spike in crude oil prices, which are currently trading at $64 per barrel (WTI) and $69.4 per barrel (Brent).