NNPC lowers its crude prices

The Nigeria National Petroleum Corporation (NNPC) slashed prices for 20 of 26 oil grades monitored by Bloomberg by USD 1 per barrel or more on Thursday, according to pricing lists.

The move will help position the country and the NNPC to retain market share as the country faces militant attacks against its energy-exporting infrastructure, low oil prices and a widening hole in its budget.

“It is a bearish signal for the light, sweet market,” Eshan Ul Haq of KBC Process Technology told Bloomberg. “In order to capture a higher share of the market, official selling prices have to come down.”

The move comes just weeks after Saudi Arabia cut its November prices for most grades, and days after oil traders reportedly pushed the NNPC to reduce its prices.

Faced with a potential debt crisis, Nigeria has been scrambling in recent weeks to boost its energy revenue and to attract investments. On Monday, Nigeria’s oil minister sought a USD 15-billion investment-for-crude deal from India during a visit to New Delhi.