22 October 2016, Abuja – The Nigeria National Petroleum Corporation slashed the official selling price of Nigeria’s crude oil grades as parts of strategy to make Nigeria crude oil attractive to buyers and to help it regain its share of the global crude oil market.
According to a report by Bloomberg Energy, the NNPC cut the price of every type of crude it sells in an effort to regain share of the global oil market at a time when there is a huge glut of cargoes.
The report disclosed that the NNPC lowered by at least $1 a barrel, its official selling prices (OSP), for 20 out of 26 oil grades monitored by Bloomberg, according to pricing lists.
It noted that Qua Iboe, Nigeria’s largest export crude oil under normal circumstances, was reduced by the most since 2014.
Specifically, it explained that the NNPC cut the selling price of Qua Iboe for November to a 17 cent premium to the benchmark Dated Brent, according to the price list, from $1.07, while it reduced the price of Bonny Light to a seven cent premium and Forcados to a 41 cent discount to Dated Brent.