Oil price drops below $70 per barrel as Nigeria’s production rises to 1.35m bpd

Brent crude oil price has dropped below $70 per barrel for the first time since December 2021.

During trading hours on Tuesday, Brent crude, the global oil benchmark, dropped by 3.45 per cent to $69.36 per barrel.

According to a Bloomberg report, adverse economic statistics from the United States and China — notably the dismal import numbers that were made public on Tuesday — have stirred fears about the demand for oil in the top two consumers and increased the likelihood that there will be a surplus next year.

The report said the fear was compounded by surging output in producing nations outside the Organisation of Petroleum Exporting Countries (OPEC).

OPEC, however, said Nigeria’s average daily crude oil production increased to 1.35 million barrels per day (bpd) in August.

In its monthly oil market report released on Tuesday, OPEC said the figure was obtained from direct communication with Nigerian officials. OPEC receives data on crude oil production from member nations and secondary communication.