Oil price is now trending towards $80 per barrel following bullish trading that heightened yesterday in the international market which saw the price leap to $78 yesterday, up from $67 April average.
Oil This followed stepped up tension in the Middle East after the opening of the United States of America’s Embassy in Jerusalem, Israel. Industry analysts also said the market situation was further fuelled by the success of the Organisation of Oil Exporting Countries, OPEC and Non-OPEC members to withdraw excess crude from the market.
Consequently, the price of Brent and WTI rose from $76.80 to $77.99 and $70.50 to $70.91 respectively in the global market.
OPEC also stated: ‘’the price of OPEC basket of 14 crudes stood at $74.42 a barrel on Friday, compared with $74.46 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).”
While a huge accretion to Excess Crude Account is expected, public finance analysts also said the current situation will impact positively on the implementation of Nigeria’s 2018 budget which was benchmarked on $45 per barrel and the production of 2.3 million barrels per day.
At the current price, Nigeria generates $33.0 per barrel as excess revenue, amounting to $75.9 million per day.At the current oil price, the excess crude oil account is expected to reach $76 million per day, about 16.2 per cent, up from $65.4 million recorded in April, 2018.