Oil prices rise to $84 a barrel ahead of OPEC+ meeting

Oil prices continued to surge ahead of Thursday’s meeting of the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+).

Oil price increased by 1.36 percent to $84.71 for U.S. West Texas Intermediate (WTI), while the Brent crude jumped 1.36 percent to $84.86 at 2:16 pm (GMT+1). 

Historically, Brent oil price crossed the $85 mark in October for the first time in three years before falling back to $82 a barrel last Wednesday.

Reports said the oil demand skyrocketed amid the gradual increase in the production quota of the OPEC+ alliance after the outbreak of coronavirus disease plunged oil prices to a low as -$37.63 last year.

Despite the rise in crude oil prices, payments for subsidy shortfall and low oil production continue to impact gains for Nigeria. 

On Thursday, OPEC+ will gather to review the benchmark for oil production.

Nigeria, one of Africa’s top producers, is struggling to boost output to the quota set by OPEC.

In September, Nigeria’s oil production increased marginally to an average of 1.25 million barrels per day from 1.24 million the previous month. The country has been performing below the OPEC quota — from an average of 1.36 million barrels per day in January 2021 to 1.25 million b/d in September.

Last week, Shell Production Development Company (SPDC), Shell’s subsidiary in Nigeria, declared force majeure on Bonny Light crude oil loadings.