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Oil price trades below $90

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Brent, the global benchmark for crude oil is now trading below $90 after hitting a record high in recent months.

Industry figures seen in the early hours of Monday showed that Brent dropped in price by $4.31 or 4.76 per cent to $85.07/barrel as at 07.00am Nigerian time.

WTI crude lost $4.75 or 5.69 per cent to close at $77.79/barrel, while the cost of oil grades in OPEC Basket dropped marginally by $0.24 or 0.25 per cent to close at $96.31/barrel.

Meanwhile, Nigeria’s struggles to produce enough oil continued as the Organization of the Petroleum Exporting Countries(OPEC) World Rig Count shows the operational rigs in Nigeria is now 10 in August from 11 in July.

Read also: Crude oil price crashes amid recession fears

An oil rig is a structure above an oil well on land or in the sea with special equipment attached to it for drilling and removing oil from the ground.

In general, the rig count indicates a willingness for oil and gas companies to continue investing

The challenges of oil theft as seen many oil and gas companies reduce their activities which have affected Nigeria’s efforts to meet production targets.

From a high of 16 oil rigs in 2019, the average number of functional oil rigs, according to OPEC, dropped to 11 in 2020, crashing further to seven in 2021.

OPEC also stated that in the first and second quarters of 2022, the average number of Nigeria’s functional oil rigs was eight and 10, respectively.

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