Oil Markets Unfazed by Nigerian Strike Collapse

Strategic Insights -

Oil prices remained unaffected by the end of a 9-week-long oil workers' strike in Nigeria, as traders shifted focus to a favorable report by the International Energy Agency (IEA) on winter supply and demand. The collapse of the strike, which had failed to gain sufficient international or domestic support, did not have a material impact on oil exports. As a result, the Nigerian "premium" had been squeezed out of the price by August. Meanwhile, oil futures saw a mixed picture with West Texas Intermediate (WTI) crude oil futures for October delivery rising 10 cents to $17.62 per barrel, while October North Sea Brent crude oil futures regained their losses, inched up 38 cents to $16.33 per barrel.

Key Takeaways:

  • The collapse of the 9-week oil workers' strike in Nigeria had no significant impact on oil markets, as the strike had failed to affect oil exports.
  • The Nigerian "premium" was squeezed out of the price in August, indicating that oil exports were not impacted by the strike.
  • The International Energy Agency (IEA) released a favorable report on the outlook for winter supply and demand, influencing oil markets.
  • West Texas Intermediate (WTI) crude oil futures for October delivery rose 10 cents to $17.62 per barrel.
  • October North Sea Brent crude oil futures regained their losses and inched up 38 cents to $16.33 per barrel.
  • The WTI-Brent spread narrowed to $1.29 per barrel, which is considered favorable for U.S. refiners.
  • Unleaded regular gasoline futures for October delivery to New York Harbor inched up 0.09 cents to 48.34 cents per gallon.
  • The oil companies raised wholesale prices on unleaded regular by 0.31 cents to 58.12 cents per gallon.

Statistics:

  • The Nigerian "premium" was squeezed out of the price in August 2023.
  • West Texas Intermediate (WTI) crude oil futures for October delivery rose 10 cents to $17.62 per barrel.
  • October North Sea Brent crude oil futures regained their losses and inched up 38 cents to $16.33 per barrel.
  • The WTI-Brent spread narrowed to $1.29 per barrel.
  • Unleaded regular gasoline futures for October delivery to New York Harbor inched up 0.09 cents to 48.34 cents per gallon.
  • The oil companies raised wholesale prices on unleaded regular by 0.31 cents to 58.12 cents per gallon.

Sources:

  • See story, p. 1.
  • See story at left.
  • New York Mercantile Exchange (Nymex).
  • London's International Petroleum Exchange.
  • The Oil Daily in cooperation with Computer Petroleum Corp.