Nigeria: Oil Price Hits U.S.$70 Per Barrel, Raises Hope for 2018 Budget

The price of crude oil has risen from $68 to $70 per barrel in the international market as a result of rising demand, thus raising hope for the implementation of the nation’s N8.6 trillion 2018 budget.

A survey of the market by Vanguard showed that the price of Bonny Light, Nigeria’s premium oil grade, hit the roofs at $70, the highest in recent times this year, yesterday.

Also, the prices of Brent and WTI rose to $69.81 and $64.53 per barrel respectively while the price of Organisation of Petroleum Exporting Countries, OPEC, basket of 14 crudes stood at $67.24 per barrel.

OPEC stated: “The price of OPEC basket of 14 crudes stood at $67.24 a barrel on Wednesday, compared with $66.39 the previous day, according to OPEC Secretariat calculations.”

The rise in price is said to constitute a good omen for the nation’s 2018 budget which was based on $45 per barrel and 2.3 million daily oil output.

Meanwhile, OPEC has predicted increased oil market stability in the coming months as a result of the compliance of its members and others to oil cut agreement.

It stated: “The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) stated that, based on the Report of the Joint OPEC-Non-OPEC Technical Committee (JTC) for the Month of November 2017, OPEC and participating Non-OPEC producing countries have shown highest level of conformity with their respective adjustments in production.”

“The JMMC was established following OPEC’s 171st Ministerial Conference Decision of 30 November 2016, and the subsequent Declaration of Cooperation made at the joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016 at which 11 (now 10) non-OPEC oil producing countries cooperated with the 13 (now 14) OPEC Member Countries in an effort to accelerate the stabilization of the global oil market through voluntary adjustments in total oil production of around 1.8 million barrels per day.

“The resulting framework, which came into effect on 1 January 2017, was for six months. The second joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on 25 May 2017, decided to extend the voluntary production adjustments for another nine months commencing 1 July 2017. During its third meeting held in Vienna on 30 November 2017, the joint OPEC-Non-OPEC Producing Countries’ Ministers agreed to amend the Declaration of Cooperation so that it will last the entirety of 2018.”

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