The Nigerian National Petroleum Corporation, NNPC, weekend, reduced the prices of Nigeria’s crude oil grades — Bonny Light and Qua Iboe — to their lowest points in over a decade.
The decline, according to reports, was due to declining demand for the country’s crude oil in the international market. The action, according to oil traders, was engendered by the need for the country to join in the fight for market share.
Specifically, the NNPC in a statement, weekend, said it will sell July supplies of Bonny Light crude at 23 cents more than Dated Brent. This, according to oil trading sources, was the smallest differential since 2005 and compares with a 50 cent premium in June and $2.55 a year earlier.
The NNPC also lowered the official selling price for Nigeria’s largest crude oil stream, Qua Iboe, to dated Brent plus 35 cents per barrel, the lowest differential since May 2005.