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Monday, 16 May 2016

Could Nigeria’s 20-year-low output edge the global oil balance to deficit?

“Drag your attention away from the Middle East for a moment,” writes Julian Lee for Bloomberg Gadfly, because what we should turn our gazes to is Nigeria. “The country that was, until recently, Africa’s biggest crude producer is slipping back into chaos. A wave of [militant] attacks and accidents have hit infrastructure, taking Nigeria’s output down to 20-year lows.” But it’s not just the militants causing a headache, Exxon declared force majeure on Qua Iboe exports when a drilling platform ran aground and ruptured a pipeline, while “Shell did similar with Bonny Light exports after a leak from a pipeline feeding the terminal.” Oil research group Petromatrix puts Nigerian production at a little over 1 mn bpd, so “it won’t take much more disruption to tip the global oil balance from surplus to deficit.”

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