There are indications that Nigeria's oil has been over-supplied as 30 unsold cargoes await buyers in the international market.
However, an oil market update obtained yesterday showed that the cargoes were scheduled for the August and September, 2018 deliveries, and buyers may come up before the end of the scheduled deliveries.
Reuters which confirmed the development stated, "There are almost 30 unsold cargoes from the August and September programmes, traders said, in addition to newly released October underlining plentiful supply.
"Qua Iboe: A prompt cargo was said to have traded at dated plus $1 or below, a relatively low level for the grade last valued by Reuters at dated plus $1.15. "Forcados: A cargo was said to have traded at about dated plus $1.30, 10 cents above a bid from Vitol on Monday. It was not possible to confirm who bought or sold the cargo."
It also stated, "Angola is set to export 49 cargoes in October after four cargoes of Gindungo, a new grade, were added to the preliminary programme. September had 47 cargoes".
The report tends to check a possible spike in oil prices early in the week, just Brent price moved to $72 per barrel, up from $71 it recorded on Monday.
However, the Organisation of Petroleum Exporting Countries, OPEC, said it was committed to achieving increased market stability. In a statement sent to Vanguard, it said, "The JMMC (Joint Ministerial Monitoring Committee) reported that participating countries in the Declaration of Cooperation have achieved a conformity level of 121 percent in June 2018.
"The JMMC also considered market conditions for the month of July as well as individual country production levels for this month and was satisfied that overall performance will not deviate from the 100 percent conformity targeted by the decision reached at the 4th OPEC and Non-OPEC Ministerial meeting on June 23. The committee decided to continue closely monitoring oil market conditions and developments with a view to improve market stability for the benefit of producers, consumers and the global economy at large.
"The committee reaffirmed its intent to strive to achieve an overall conformity level of no less than 100 percent. Furthermore, the JMMC decided to hold monthly meetings (physically or by teleconference) with the objective of more closely monitoring the market and recommending appropriate response measures."