How Nigeria’s crude spec, Brent, rose to the price last seen since October 2018 and why the country’s fuel subsidy payment may hit the roof
The price of crude oil has hit 3-year high, trading at $85 per barrel during the Friday morning transactions at the global market.
Platforms Africa reports that the price of Nigeria’s crude spec, Brent oil, rose to &85 per barrel, the price last seen since October 10, 2018.
The World oil prices also accelerated growth by 1%, according to trading data.
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The price of December futures for Brent crude oil grew by 1.21% – to 85.02 dollars per barrel, November futures for WTI – by 1.12%, up to 82.22 dollars per barrel. In the morning, oil rose in price by an average of 0.7% – 0.8%.
Earlier this month, oil producers in the OPEC+ cartel ignored the US pleas to increase output more quickly than planned by the group.
OPEC+ said it will stick with plans to release an additional 400,000 barrels per day onto the market from November through April, as part of a gradual unwinding of historic supply cuts in place since the COVID-19 outbreak last year.
This price surge, however, is a mixed grill for Nigeria, according to Platforms Africa.
“While the country is expected to earn more revenues from the higher price, it also means higher payment of subsidy on imported white products.
“Nigeria, biggest exporter of crude oil in Africa ironically doubles as the continent’s biggest importer of refined products due to the poor state of its refineries,” a report by Platforms Africa read.
