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

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, a...
3 comments
Read more

EXCLUSIVE BREAST MILK IS THE BEST ONDO FIRST LADY TELLS NURSING MOTHERS AT BREASTFEEDING WEEK CELEBRATION

    Government Stresses Importance of Breast milk for Children as  Ondo State Celebrates Commencement of World Breastfeeding  Week   . ....525 nursing mothers breastfeed children. Ondo State on Friday joined the rest of Nigeria and the International Community in the celebration of 2024 World Breastfeeding Week. In a message to the event, held at the International Event Centre,  The Dome, in Akure, the First Lady, Mrs. Oluwaseun Aiyedatiwa emphasized the critical importance of initiating breastfeeding within the first hour of birth and maintaining exclusive breastfeeding for the first six months. The wife of the Governor, who was represented by Commissioner for Women Affairs, Mrs. Lola Fagbemi, reiterated that workplaces in the state are being adapted to support nursing mothers, highlighting the state's commitment to providing conducive environments for breastfeeding. She noted that Ondo State places significant priority on maternity leave for nursing ...
Post a Comment
Read more

TEMPLATE ON HOW TO POSITION ONESELF FOR MORE RELEVANCE AFTER YEARS OF PUBLIC SERVICE: THE DR BARRISTER ROTIMI ADEYEMI EXAMPLE

  TEMPLATE ON HOW TO POSITION ONESELF FOR MORE RELEVANCE AFTER YEARS OF PUBLIC SERVICE:    THE DR BARRISTER ROTIMI ADEYEMI    There is time for everything under the Sun: time to be born, time to die, time of joy and of sadness, time to take and to give, time to start and time to end etc. Everything under the has its allotted time.   The above passage taken from the Holy Writ best summarises the life of every mortal. This has nothing to do with education, wealthy, position, religion etc. It is the lot of all of us.    Every peregrination of man commences sometime and somewhere. When the then young, bubbling and energetic Rotimi Adeyemi joined the public service in those days and came round, people used to call him wolewole. It was a derogatory word used to describe sanitary inspectors. They were popular on account of their notoriety for making life difficult for landlords and occupants of unhygienic  surroundings. People saw them as burdensome...
Post a Comment
Read more