An improvement in Nigeria’s oil earnings is on course as prices held firm on Friday near three-year highs reached earlier this week as ongoing Organisation of Petroleum Exporting Countries (OPEC)-led supply cuts, as well as strong demand, gradually draw down excess supplies.
According to reports, Brent crude oil futures were up at $73.79 per barrel at 0440 GMT. U.S. West Texas Intermediate (WTI) crude futures down 2 cents at $68.40 a barrel.
Both Brent, which Nigeria produces, and WTI hit their highest levels since November 2014 on Thursday, at $74.75 and $69.56 per barrel respectively.
WTI is set for its second weekly gain.
Oil prices have been pushed up by a gradually tightening market.
Led by top exporter, Saudi Arabia, OPEC has been withholding production since 2017 to draw down a global supply overhang.
The tighter oil market is feeding into refined products.
Oil supply tightness is also a result of healthy oil demand.
Beyond OPEC’s supply management, crude prices have also been supported by an expectation that the United States will re-introduce sanctions on OPEC-member Iran.