Nigeria fails to meet OPEC quota as oil price soars near $76 a barrel

Oil prices rose further Thursday, but cash strapped Nigeria is again facing the curious dilemma arising from its failure to pump out enough crude to meet the country’s OPEC.

Thursday’s price surge extends the strong gains overnight with fuel demand growing and crude stocks declining as production remains hampered in the US Gulf of Mexico after two hurricanes.

Nigeria suffers from the twin crises of foreign exchange shortage and collapse in government revenues but persistent policy failures mean its oil industry has remained in virtual doldrums for years.

Reports say the improving international market was also supported by a broader switch back into risk assets as concerns eased over a potential default by huge property developer China Evergrande and the possible fallout on the world’s second-largest economy.