Nigeria Oil Revenue Down By N35.7 Billion in Q2
The Central Bank of Nigeria (CBN) has released its Q2 report, which reveals that oil revenue continued to decline. Gross oil receipts of N1,813.77 billion, which constituted 76.5 per cent of total revenue declined by N35.7 billion representing1.9 per cent below the preceding quarter except domestic crude oil and gas sales. As a percentage of projected second quarter 2013 nominal GDP, oil revenue was 25.6 per cent.
Crude oil and natural gas production decreased by 5.9 per cent to 1.93 mbd (175.63 million barrels) compared with 2.05 mbd (184.5 million barrels) in the previous quarter.
Crude oil exports also recorded a decrease in Q2 2013. Exports achieved an estimated 1.48 mbd (134.68 million barrels) compared with 1.60 mbd (144.0 million barrels) in the previous quarter, representing a decline of 7.5 per cent. CBN attributed this development to the “incessant pipeline vandalisation resulting from crude oil theft in the Niger Delta.”
Allocation of crude oil for domestic consumption was 0.45 mbd (40.95 million barrels) during the period under review.
Average crude oil prices, including the price of Nigeria’s reference crude, Bonny Light (37o API) fell in the international crude oil market in Q2 2013. Bonny Light fell by 8.8 per cent from the level in the preceding quarter. The average price of other competing crudes, namely UK Brent and Forcados also declined to $103.14 and $106.46 per barrel respectively from $113.68 and $116.89 per barrel in the preceding quarter, while the West Texas Intermediate (WTI) at $93.97 recorded a slight increase of 3.2 per cent.
Similarly, the average price of OPEC’s basket of 11 crude streams, at $100.90 per barrel also declined by 7.8 per cent and 4.9 per cent, compared with the average of US109.48 and $106.08 per barrel in the preceding and corresponding quarter of 2012 respectively.
The fall in prices was generally attributed to the on-going Eurozone economic turmoil and high record levels of the US oil inventories.