Nigeria’s excess oil revenue has risen to N22.4 billion daily as a result of the sudden leap in the price of crude from $67 to $77 per barrel in the international market.
The rise in oil price was partly attributed to President Donald Trump’s decision to re-impose economic sanctions on Iran and the continued output cut by members of the Organisation of Petroleum Exporting Countries, OPEC.
Consequently, current oil market situation is expected to impact positively on the nation’s 2018 budget.
The nation’s N8.612 trillion 2018 budget which the National Assembly had promised to pass next week was benchmarked on $45 per barrel of oil and the production of 2.3 million barrels per day.
But the rise in oil price showed an excess of $32 per barrel against the $45 per barrel budget benchmark price, indicating excess daily revenue of $73.6 million or N22.4 billion at the official exchange rate of N305 per dollar.
A survey of various oil markets around the world by Vanguard yesterday, showed that the price of some light crude, including Nigeria’s Bonny Light was in excess of $77 per barrel.
The price of Brent (usually used to benchmark others) and WTI stood at $78.95 and $71.01 respectively.
Also, the price of OPEC basket of 14 crudes stood at $72.12 a barrel, compared with $72.45 the previous day, according to OPEC Secretariat calculations.
The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
Oil market
Meanwhile, OPEC has indicated that the price of oil will continue to rise in the coming weeks because of increased commitment of members to its oil cut deal.
It will be recalled that in his keynote address at the fifth Kuwait oil and gas show, , HE Mohammad Barkindo, OPEC Secretary General, had said “In OPEC’s World Oil Outlook 2017, published in November last year, the global economy is estimated to more than double by 2040. And over the same time-frame, world population is projected to reach around 9.2 billion, an increase of around 1.8 billion.
“We should also not forget that today around three billion people do not have clean fuels for cooking, and 1.1 billion have no access to electricity, something that we take for granted. When we start up our cars, switch on a light, turn on our mobile phones, we need to recognise that these everyday things are still unknown to billions of people across the world who continue to suffer from energy poverty. It is a universal obligation to address this major challenge.”
