By Teddy Nwanunobi
Better times are here for the Federal Government, as Brent Crude, Nigeria’s crude oil benchmark, hit $84.50 per barrel on Monday afternoon, according to data from the Nigerian National Petroleum Corporation (NNPC).
The product gained $2.11 per barrel to rise at 2.56 per cent.
“More revenue for the Nigerian government, especially as the 2022 budget is benchmarked on $57/barrel”
“The rise followed ballooning demand for crude oil as more countries reopened for economic activities after a lull created by the COVID-19 pandemic”
The surge also sprang from a rise in demand for energy that resulted from rebound activities in the face of the refusal of the Organisation of Petroleum Exporting Countries (OPEC) to increase supply.
Reuters reported that oil prices rose more than 2 per cent on Monday, extending gains as an energy crisis gripping major economies shows no sign of easing amid a pick-up in economic activity and restrained supplies from major producers.
Brent Crude was up $1.70, or 2.1 per cent, at $84.09 a barrel by 1100 GMT, its highest since October 2018.
US West Texas Intermediate (WTI) crude rose $2.08, or 2.6 per cent, to $81.43 for its highest since late 2014.
Oil prices are likely to continue climbing in the short term,” said Commerzbank analyst, Carsten Fritsch.
The development, experts noted, means more revenue for the Nigerian government, especially as the 2022 budget is benchmarked on $57/barrel.