Skip to main content

OIL PRICE HITS SEVEN YEAR HIGH, RISES ABOVE $93 PER BARREL

 

Oil soars above $93, Nigeria’s revenue prospects brighten

Crude oil

The international oil benchmark, Brent crude, extended its gains on Friday, rising above $93 per barrel, in what is a potential boost to Nigeria’s crude oil export revenue.

Brent crude, against which Nigeria’s oil is priced, hit a fresh seven-year high of $93.44 per barrel as of 4:15pm Nigerian time on Friday, trading more than $30 higher than the Federal Government’s benchmark for the 2022 budget.

The 2022 budget, which was signed by President Muhammadu Buhari in December, was based on oil production of 1.88 million barrels per day, with an oil benchmark price of $62 per barrel.

For Nigeria, which relies on crude oil for about 50 per cent of government revenues and over 90 per cent of export earnings, rising oil price means increased revenue.

On the other hand, rising oil price also translates to increased cost of petroleum products as the country depends heavily on imports due to a lack of domestic refining.

A winter storm in the United States is behind the latest oil price rally, fuelling concerns about production outages in the Permian Basin, the largest US shale play, according to Reuters.

Nigeria has not been able to leverage the oil price rally as its crude oil production has remained below the quota given to it by the Organization of the Petroleum Exporting Countries in recent months.

It was reported this week that Nigeria missed its crude oil output quota for January 2022, pumping 1.46 million bpd as against a quota of 1.68 million bpd.

“Crude oil terminal maintenance, shutdown, vandalism, and reduced investments in the oil sector have continued to undermine oil production, masking the gains from increasing oil prices,” analysts at CSL Stockbrokers Limited said in a new report.

According to the report, the Petroleum Industry Act 2021, which was signed into law by the President on August 16, 2021 to repeal the extant Petroleum Act 2004, creates provisions and innovations that will affect various aspects of the oil and gas industry.

The analysts said, “We are hopeful that it will result in increased investments in the oil and gas sector. We project crude oil production (including condensates) will reach 1.75mbpd in 2022. While this is an improvement from 2021 levels, it still lags the five-year average of 1.85mbpd.

“We expect the continued elevated crude oil price, coupled with the passage of the PIA, to incentivise drilling activities. Beyond this, we expect the commencement of 160,000 Amukpe-Escravos export terminals in H2 2022 to support crude oil production.”

Comments

Post a Comment

Popular posts from this blog

$100 MILLION STOLEN BY HACKERS IN CRYPTO HEIST

  Hackers steal nearly $100m in Japan crypto heist IMAGE SOURCE, Liquid has been hit by hackers, with almost $100m (£73m) estimated to have been stolen. Leading Japanese cryptocurrency exchange Liquid has been hit by hackers, with almost $100m (£73m) estimated to have been stolen.  The company announced that some of its digital currency wallets have been "compromised." It is the second major theft of cryptocurrencies to take place in recent days.                 Last week, digital token platform Poly Network was at the centre of a $600m heist. "WE ARE SORRY TO ANNOUNCE THAT #LIQUIDGLOBAL WARM WALLETS WERE COMPROMISED, WE ARE MOVING ASSETS INTO THE COLD WALLET," THE COMPANY SAID ON TWITTER. So-called 'warm' or 'hot' digital wallets are usually based online and designed to allow users to access their cryptocurrencies more easily, while 'cold' wallets are offline and harder to access and therefore usually more secure.                            
Post a Comment
Read more

Countries Accepting Nigerians Seeking Second Citizenship

  Countries Accepting Nigerians Seeking Second Citizenship Nigerians are able to access the following citizenship and immigration programs: The Caribbean Second Citizenship Programs, Caribbean nations like St. Kitts & Nevis, St. Lucia and Grenada offer second citizenship through their respective Citizenship-by-Investment programs. A holder of one of these passports may travel visa free to about 135 countries, including all European Union countries, the UK, Russia, Turkey, Singapore and Hong Kong. Holding a citizenship from one of these respected countries may also make it easier to obtain residency status or study in other countries, and allows political security and makes it easier to open bank accounts in foreign jurisdictions. To qualify, an applicant needs to be of good reputation and make a government donation of at least $100,000 USD after approval of their citizenship application.  Approval of a Citizenship-by-Investment application normally takes about 3 months, and all de
3 comments
Read more

AKURE OBASHIP: OBA AGUNSOYEBIOYINBO ADEMUAGUN ADESIDA 11 BROUGHT CLASS AND DIGNITY TO THE THRONE

      AKURE OBASHIP: OBA AGUNSOYEBIOYINBO ADEMUAGUN ADESIDA 11 BROUGHT CLASS AND DIGNITY TO THE THRONE                 By Sunday Ajibola There are men and there are men. Man gets to positions of power and authority and bring to bear their inner qualities. Position, as we have it here, is used to do all sorts of things; good and bad. But mostly and vexatiously, position blinds us as we use it to cheat and deny others their rights. Certain men understand that position is an opportunity to etch their names in gold and put such in the same of time.   It is exactly fifty years today that the 42nd Deji of Akure, late Oba Agunsoyebioyinbo Ademuagun Adesida 11 joined his ancestors. That fateful day was Sunday and in the evening; darkness was just enveloping the city. It was the strange shouts of "opo ye o, opo ye o, opo ye o", that prompted me to rush out of our house at Oke aro. I saw people running helter, skelter. I did not bother about them. I was looking for the "electric
Post a Comment
Read more