Nigeria lowers benchmark crude forecast due to oversupply

Nigeria’s Finance Minister, Zainab Ahmed,said on Tuesday that there were “strong indications” of an oversupplied oil market next year and lowered price expectations for the country’s benchmark crude.

Ahmed told journalists that she had lowered a forecast for Nigeria’s benchmark price to $55 per barrel from $60 per barrel, in part “to cushion against an unexpected price shock”.

Ahmed said Africa’s largest oil exporter is producing roughly 2.3 million barrels per day (bpd) of crude oil and condensates.

It has agreed to a cap of 1.685 million barrels per day of crude oil with the Organization of the Petroleum Exporting Countries (OPEC).