Nigeria Lowers Benchmark Crude Forecast Citing Oversupply Oil Market

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Chibisi Ohakah

Nigeria’s Finance Minister, Zainab Ahmed has said that government has lowered a forecast for Nigeria’s benchmark price next year to $55 per barrel from $60 per barrel, in part “to cushion against an unexpected price shock”.

The minister who spoke as the Federal Government prepared its medium-term expenditure framework – a plan it uses to prepare the national budget said the lowered price expectations were due to “strong indications” of an oversupplied oil market in 2020.

Ahmed who spoke yesterday to Reuters on the sidelines of the ongoing World Energy Congress (WEF) in Abu Dhabi said Nigeria is producing roughly 2.3 million barrels per day (bpd) of crude oil and condensates. It has agreed on a cap of 1.685 million bpd of crude oil with the Organization of the Petroleum Exporting Countries (OPEC).

When asked about current overproduction she said the country will do what OPEC asks it to do.

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