Oil
prices dropped more than three per cent yesterday due to return of
Nigerian and Canadian crude output from outages and as traders booked
profits at the end of the best quarter in seven years.
According to Reuters, the market soared
more than 25 per cent in the second quarter, as part of an 85 per cent
rebound since hitting 12-year lows early this year, as unplanned
production cuts from Canada to Nigeria eased the glut that prompted the
worst price rout in a generation.
However, production in Nigeria has risen
to about 1.9 million barrels per day (bpd) from 1.6 million, due to
repairs and a lack of new major attacks on pipelines in the Delta
region, the Nigerian National Petroleum Corporation said.
Resurgent Nigerian supply will put
pressure on prices, Goldman Sachs said, adding that outages caused by
Canadian wildfires would virtually end by September.
OPEC’s oil output rose in June to its
highest in recent history, a Reuters’ survey showed, as Nigeria’s output
partially recovers from militant attacks and Iran and Gulf members
boost supplies.
Brent futures for August delivery, which
expired yesterday, settled down 93 cents, or 1.8 percent, at $49.68 a
barrel. The more active Brent contract for September delivery settled at
$49.71, down 3.1 percent.
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