Presidential spokesman denies ceasefire report
WTI crude is down more than $1, in part because of reports of a ceasefire between Nigerian government forces and oil militants.
However, President Buhari's spokesman denied it. "If there is anything like that you'll be formally informed. I'm not aware," he told Bloomberg. An executive at Chevron in Nigeria also said he didn't have information of a ceasefire.
The report originated in the Lagos-based newspaper ThisDay and said a 30-day ceasefire with Niger Delta Avengers was agreed to enable the President to come up with plans to develop energy resources.
Nigeria may be pumping as little as 1.1 million barrels per day, at 22-year low. That's nearly 2 million bpd of idled capacity.
The problem in Nigeria is that low oil prices have caused turmoil. In turn, rebels are stepping up attacks and unrest is increasing. So the government loses money on lower oil, lower production and increased security costs