At 2:29pm BST, the Brent front month futures contract was down 1.34% or 79 cents to $58.23 per barrel, having spiked by 4% to within touching distance of $60 intraday - it's highest level since July 2015 - before retreating during afternoon European trading.
Currently, not only is demand growth seen as strong, but the futures curve and OPEC's cuts are also leading to a tighter market, and traders are said to be selling crude that they had stockpiled at Saldanha Bay in South Africa.
He said the NPDC was the biggest and largest gas producer in the country and was also the highest supplier of gas to the domestic market.
Kachikwu noted that even though Nigeria hit 1.802 million barrels per day in the month of August that was not enough justification for a call by some countries for Nigeria to be brought into the fold.
OPEC/ NON-OPEC Cuts: Despite market doubts, it is clear that after some time that the historic OPEC/NON-OPEC production cuts have helped balance the global oil market and has succeeded in reducing the oil glut.
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But much of the renewed call for a cutback extension has been accompanied by an equally loud demand that OPEC focus on exports rather than production, and on that score Iran stated it will continue to maintain its rate of exporting oil to global customers, to the tune of about 2.2 million barrels per day (this was in response to reports of USA president Donald Trump intensifying his offensive against the country).
"On the basis of the current IEA estimates, the oil market is more or less balanced in the second half of the year", said Commerzbank in a note. OPEC secretary-general Mohammed Barkindo said this week that crude exports from the Middle East to Asian markets were expected to increase by 7.5 million barrels a day between 2016 and 2040, to 22 million barrels.
The net long position in US heating oil rose by a further 5 million barrels to 51 million, the highest since February 2013. "I think (Nigeria's oil - TASS) minister will make it public himself", he said. There was speculation that extension of the deal may be announced but Opec left it for its January 2018 meeting.
Kuwaiti Oil Minister Essam al-Marzouq, who chaired the meeting, said the market "is evidently well on its way towards rebalancing". There are many ways to measure that but many in the industry are suggesting that supply is tightening more significantly than the major reporting agencies are reporting.
The pipeline, which Erdogan has threatened to "close", usually pumps between 500,000 and 600,000 barrels a day.
During the session, the discount of WTI to Brent futures hit its widest since August, 2015 as USA crude was pressured by hurricane damage to US refineries.