Traders seek clarity around Nigerian oil output

Market participants awaited concrete plans on Nigerian crude oil output for May and June as the state oil company was in discussions with local companies and international majors on how to rein in supply amid a production cut pact and poor sales.

Trading sources said Nigeria’s NNPC was communicating with international firms on how to reduce output to align with an
unprecedented producer cut pact.

May official selling prices and June export programmes were delayed pending a resolution to the issue, and traders offered contending accounts of how advanced discussions were.

A possible crux to the talks revolved around whether producers in Nigeria would comport to an across-the-board cut or more of a burden would be saddled by offshore fields, in which the NNPC is not as exposed.

A source from at least one energy major expressed confidence that its offshore output would remain steady, but traders awaited a downward revision of May and June volumes.

Source: Reuters