Iran and United States of America has joined forces to scuttle the economic hegemony of OPEC countries.
Saudi Arabia is the de facto head of all OPEC countries. Nigeria is part of that organization.
Recall that OPEC countries had agreed to reduce oil supply to the international market so as to ramp up prices.
The decision led to a surge in crude oil prices during the first week of 2017.
Iran and USA responded by pumping more of the products into international markets.
Needless to say, oil prices dipped following the decision by the Obama-led administration and his Iranian friends.
Brent crude traded at $56.84 per barrel at 0535 GMT, down 26 cents from their last close.
U.S. West Texas Intermediate (WTI) crude oil futures were trading at $53.70 per barrel, down 29 cents.
Iran has sold more than 13 million barrels of oil held on tankers at sea, capitalizing on an OPEC output cut deal.
The amount of Iranian oil held at sea has dropped to 16.4 million barrels, from 29.6 million barrels at the beginning of October.
Before that sharp drop, the level had barely changed in 2016
It was 29.7 million barrels at the start of last year, the data showed.
Iran’s surging tanker exports weren’t the only indicator of plentiful supplies.
U.S. energy companies last week added four oil rigs for a tenth week in a row, extending a recovery in oil activity.
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As a result of the increased drilling, U.S. oil output has risen by over 4% from its 2016 low to almost 8.8 million barrels per day.
A fall in oil prices is also a fall in revenue for OPEC countries, including Nigeria.
The President hopes oil prices will soar. If the Iranians continue this trend, the President Buhari’s 2017 budget will be negatively affected.