Tuesday, January 19, 2021

Oil revenue gets a boost as price hits $55

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The international oil benchmark, Brent crude extended its gains on Friday, rising above $55 per barrel, a potential boost to Nigeria’s crude oil export revenue.

Brent crude against which Nigeria’s oil is priced hit an 11-month high of $55.41 per barrel as of 2:50pm Nigerian time on Friday, trading more than $15 higher than the Federal Government’s benchmark for the 2021 budget.

The 2021 budget, which was signed by President Muhammadu Buhari, on December 31, was based on an oil price benchmark of $40 per barrel and a production level of 1.86 million barrels per day.

The upturn in oil prices was supported by Saudi Arabia’s pledge to cut output and a global stocks rally as investors looked beyond rising coronavirus cases.