A five-day price rebound has seen Brent crude – the price used to measure Nigeria’s petroleum grades – climb up from lows of $58 to $63.
Oilprice.com, which gives life petroleum prices, said the commodity was slightly down to $62.79 on Tuesday.
The major factor for the mini-hike is said to be the intention of the Organisation of Petroleum Exporting Countries and its Russian-led allies to extend production cuts, which Nigeria has not been diligent with beyond December 2019.
Recent drops in the supply of Shale oil from the United States and a cabinet reshuffle in Saudi Arabia has also helped Nigeria’s mono-economy create new revenue sources for the time being.
Despite Nigeria’s non-compliance with its production quota, the alliance has been able to fulfill its output limitation by over 100 per cent, doing 136 per cent in August.
The country produced 1.97m barrels per day in June 2019, higher than its 1.786m OPEC quota.