Nigeria’s Bonny Light crude oil price has fallen by 3% to $73.87 per barrel, compared to $76.37 last week, raising concerns about the country’s 2023 budget, which has been pegged at $75 per barrel and 1.8 million barrels per day, including condensate.
The dip has been attributed to a global economic slowdown, which has already caused the collapse of two US banks.
Goldman Sachs has revised its forecast for oil prices, saying that it no longer expects prices to reach $100 per barrel in 2023, instead predicting that they will hover around $94 per barrel in the coming year before landing at $97 per barrel in 2024.
Despite a 3.8% increase in oil production in Nigeria in February, the National President of Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, has warned that pipeline vandalism, oil theft and illegal refining in the Niger Delta may mean that Nigeria struggles to meet its 1.8 million bpd OPEC quota.
The Nigerian National Petroleum Company (NNPC) Limited is aiming to produce an average of 2.2 million bpd, including condensate, in 2023.
