Petroleum Futures Mixed
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Petroleum futures prices were mixed in volatile trading Tuesday on the New York Mercantile Exchange in a market that was unsettled by a coup in Nigeria, one of OPEC’s top four producers.
Most prices advanced sharply in early trading as analysts were unsure what effect the toppling of the military government would have on the country’s oil exports.
Nigeria is the fourth-largest exporter of crude oil based on the quotas established by the Organization of Petroleum Exporting Countries. However, analysts said the country recently has been exporting about 1 million barrels a day, 300,000 barrels a day less than its quota.
Peter Beutel, an oil analyst with Rudolf Wolff Commodities, said the Nigerians’ need for cash and the tendency for a shaky government to pursue short-term goals could prompt it to exceed its OPEC quota, which would sharply pressure oil prices.
Oil prices began coming down as the market realized that a new government in Nigeria probably would increase exports to shore up the country’s economy.
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