The stoppage of supply from the Shell Petroleum Development Company Limited (SPDC) joint venture at the Forcados facility has in a positive way affected the price of crude oil in the global market, the Nation reports.

Shell had declared force majeure on shipment from the Forcados export terminal in Delta State due to the damage of the export pipeline, causing the company to lose approximately 400,000 bopd. The 48” diameter pipeline was closed in February and is expected to be reopened in April.

According to the Organization of Petroleum Exporting Countries (OPEC), the force majeure and outages around the Mediterranean and Turkey have assisted in boosting the market.

“Outages around the Mediterranean, with Turkey’s Ceyhan pipeline down, and in West Africa, with force majeure imposed on shipments of Nigeria’s Forcados until April, have helped boost North Sea prompt prices. Supply distribution in the North Sea itself has also helped,” the group said in its monthly report.

The group added that after a three months decline, crude oil futures stabilized amongst many positive factors that brought about assumptions that the oil markets will soon recover. Also the pact to freeze output at January level by oil producers, in April gave support to the market.

Anita Fatunji