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Oil nears $140, highest since 2008 as NNPC announces 21 pipelines vandalised



Oil prices rise as OPEC, allies agree deal to cut output by 10m barrels/day

Oil prices continued to surge on Monday morning and hit $140, the highest level since the administration of Umaru Musa Yar’Adua.

Data from Reuters showed that Brent at 5am was trading as high as $139.13 before retreating to $127 per barrel.

Similarly, West Texas Intermediate crude futures, the U.S. oil benchmark, spiked to $12605 per barrel.

The increase in oil prices to the highest level since July 2008 is coming as U.S. and its allies considered to ban the import of Russian oil — a move which would “further isolate Russia from the global economy.”

“Our bill would ban the import of Russian oil and energy products into the United States, repeal normal trade relations with Russia and Belarus, and take the first step to deny Russia access to the World Trade Organization. We would also empower the Executive branch to raise tariffs on Russian imports,” US secretary of State Antony Blinken said.

Meanwhile, The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a trading surplus of N37.50 billion for the month of September 2021.

This represents a 352% increase from the N8.29 billion surplus in August 2021.

Details of the figures contained in the September 2021 NNPC Monthly Financial and Operations Report (MFOR) indicate that the rise in trading surplus was largely due to the increased earnings of NNPC’s Upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

Trading surplus or trading deficit is derived after deduction of the expenditure profile from the revenue in the period under review.

Thus in September 2021, NNPC Group’s operating revenue as compared to August 2021, was reduced by 29.87% or N191.90billion to stand at N450.45billion. Similarly, expenditure for the month decreased by 34.87% or N221.11billion to stand at N412.92billion.

Read also: Oil price may hit $100 per barrel today

Garba Deen Muhammad, Group General Manager, Group Public Affairs Division, NNPC Ltd, in a statement at the weekend said expenditure as a proportion of revenue in the month under review stood at 0.92%, compared to last month’s 0.99%.

The report also showed a total Crude Oil and Gas export receipt of $348.63million in September 2021 as against $224.29million in August 2021.

Receipts from Crude Oil amounted to $8.38 million while Gas and miscellaneous receipts stood at $55.25million and $285.00million respectively.

Total Crude Oil and Gas export receipt for the period of September 2020 to September 2021 stood at $2.03billion

In the Downstream sector, to ensure uninterrupted supply and effective distribution of petrol across the country, a total of 1.39billionn litres translating to 46.31million litres/day was supplied for the month of September 2021.

For the month under review, NNPC revealed 21 pipeline points were vandalized, the same as recorded in August 2021.

Port Harcourt area accounted for 5%, while Mosimi Area accounted for 95% of the vandalized points.

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