Nigeria's Premium Light Sweet Crude, Qua Iboe, Has Exceeded $100 Per Barrel

 

Nigeria's premium light sweet crude, Qua Iboe, has exceeded $100 per barrel for the first time since 2022 due to a global market that is experiencing a supply deficit. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have maintained production cuts while oil demand has rebounded following COVID-19 pandemic recoveries. 

Additionally, supply disruptions resulting from the ongoing war in Ukraine have contributed to this price surge.

ExxonMobil produces Qua Iboe from various offshore fields before exporting it through the Qua Iboe Terminal. This high-quality crude boasts low sulfur content and is therefore highly favored by refiners.

According to SEB analyst Bjarne Schieldrop: "The rise in Qua Iboe prices signifies an increasingly tight oil market; OPEC+ struggles to meet demand while concerns over supplies continue amidst the Ukrainian conflict."

While Nigeria stands to benefit significantly from higher Qua Iboe prices given its reliance on oil exports for revenue generation purposes, worldwide consumers are likely to experience increased gasoline and diesel costs as a result.