Business

Oil Price Rises After Shocking OPEC+ Production Cut

Published

3 years ago

April 3, 2023

The oil price has surged to $86 per barrel after the world’s largest producers, the Organisation of the Petroleum Exporting Countries (OPEC) announced a surprise cut in production.

The development, is, however, likely to stimulate fresh tensions with the United States as Western governments try to get a grip on inflation.

According to the Guardian UK, the OPEC+ group of countries, which includes major producers Saudi Arabia, Iraq and Russia, said they would reduce production by around 1 million barrels a day, accounting for about 3.7% of global demand.

The move is atop of existing plans to continue cutting 2 million barrels a day – initially decided in November – until the end of 2023.

The decision instigated an immediate spike in Brent crude futures contracts for May, with the international benchmark for oil prices rising more than 7% to $86 a barrel on Monday morning.

Shares in the UK’s biggest oil producers jumped in response to higher oil prices. BP and Shell were up 4% on Monday morning, making them the top risers on the FTSE 100. The FTSE 250 companies Harbour Energy and Tullow Oil were up nearly 6% and 4%, respectively.

While OPEC+ representatives said the move was proposed to support market price stability, some analysts said members were angling for higher profits.

“Officially, the cartel wants price stability in oil markets,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. “But in reality, they simply want higher prices.”

The cut arises following a drop in oil prices in the first three months of the year, which resulted in its worst first-quarter performance since travel bans came into force at the start of the Covid pandemic in 2020.

But the western governments are concerned that the decision by OPEC+ to prop up prices could harm efforts to curb inflation that were originally exacerbated by geopolitical tensions following Russia’s invasion of Ukraine.

Michael Hewson, the chief market analyst at CMC Markets UK, said: “The reality is that inflation is unlikely to be receding any time soon short of an economic collapse, and with OPEC+ unexpectedly announcing at the weekend that they would be cutting output by 1.1 million barrels a day from next month, we could well see the economic boost offered by the recent fall in energy prices start to reverse if this morning’s surge in oil prices gains traction and starts to head towards $100 a barrel.”

The United States came out strongly against the OPEC+ output cut, which could prompt a further spike in fuel prices and consumer costs more broadly. “We don’t think cuts are advisable at this moment given market uncertainty – and we’ve made that clear,” a spokesperson for the US national security council said.

Business

Naira Continues Gain Against US Dollar As Nigeria’s Foreign Reserves Climb To $45.57bn

Published

1 day ago

January 6, 2026

Editor

The Naira appreciated further against the United States Dollar at the official foreign exchange market, beginning the week on a good note.

Central Bank of Nigeria data showed that the Naira strengthened on Monday to N1,429.31 per dollar, up from N1,430.85 exchanged on Friday, 2 January 2026.

This means that the Naira gained N1.56 against the dollar on Monday when compared to N1,430.85 last week Friday.

At the black market, the Naira dropped by N5 to N1480 per dollar on Monday, down from N1475 traded Friday.

The development comes as the country’s external reserves rose to $45.57 billion as of Friday last week.

Business

NNPCL Reduces Fuel Price Again

Published

2 days ago

January 5, 2026

Editor

The Nigerian National Petroleum Company Limited, NNPCL, has again reduced its premium motor spirit price.

In Abuja, on Monday morning, it was gathered that NNPCL retail outlets have reduced their fuel price to N815 per liter, down from N835.

This means that the NNPCL filling stations cut their price by N20.

The fresh price has been implemented at NNPCL filling stations in Wuse Zone 6 and 4 Abuja, Keffi-Abuja Road, and Kubwa Expressway.

An NNPCL filling station attendant, who preferred anonymity, told DAILY POST that the new price was implemented on Sunday evening.

However, the N815 per liter is N79 higher than the N739 per liter sold at Dangote Refinery’s backed MRS filling stations nationwide.

DAILY POST recalls that NNPCL on December 19, 2025, cut its price of petrol by N80 to N835 amid a price war among players in the country’s oil downstream sector triggered by Dangote Refinery’s gantry price reduction to N699 per liter.

Business

NNPCL Announces Restoration Of Escravos-Lagos Pipeline

Published

1 week ago

December 30, 2025

Editor

The Nigerian National Petroleum Company Limited (NNPCL) has announced the complete restoration of the Escravos-Lagos Pipeline System (ELPS) in Warri, Delta State, following the recent explosion on the asset.

The chief corporate communications officer (CCCO) of the nation’s oil company, Andy Odeh, in a statement, said that the pipeline is fully operational, reiterating the company’s resilience and commitment to energy security.

“NNPC Limited is pleased to announce the successful restoration of the Escravos-Lagos Pipeline System (ELPS) in Warri, Delta State.

“Following the unexpected explosion on December 10, 2025, we immediately activated our emergency response, deployed coordinated containment measures, and worked tirelessly with multidisciplinary teams to ensure the damaged section was repaired, pressure-tested, and safely recommissioned.

“Today, the pipeline is fully operational, reaffirming our resilience and commitment to energy security. This achievement was made possible through the unwavering support of our host communities, the guidance of regulators, the vigilance of security agencies, and the dedication of our partners and staff.

“Together, we turned a challenging moment into a success story, restoring operations in record time while upholding the highest standards of safety and environmental stewardship.

“As we move forward, NNPC Limited remains steadfast in its pledge to protect our environment, safeguard our communities, and maintain the integrity and reliability of our assets. Thank you for your trust as we continue to power progress for Nigeria and beyond,” the statement read.