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Nigeria and other oil producers may be in for good times as oil prices rose more than 3 per cent on Wednesday, bolstered by the biggest one-week drop in U.S. inventories so far in 2017.
The development came after Iraq and Algeria joined Saudi Arabia in supporting an extension to OPEC supply cuts.
Global benchmark Brent crude, which Nigeria trades, according to Reuters, settled up $1.49 a barrel, or 3 per cent, to $50.22 a barrel.
In the 2017 Budget, President Muhammadu Buhari has pegged the projected price of crude at 44.5 dollars per barrel.
Global oil prices surged after the Organization of the Petroleum Exporting Countries, OPEC, agreed in November with some other producing countries to curb supply.
Nigeria, which along with Libya is exempt from OPEC cuts, is also expected to see a jump in output soon.
The oil producers will meet on May 25 in Vienna to discuss possibility of extension.
Ibe Kachikwu, Nigeria’s oil minister, had earlier hinted that he expected an extension in the cut.
“I expect we (Nigeria) will get OPEC exemption but one year from now will it be renewed? I am not too sure,” he said.
- Reuters
The development came after Iraq and Algeria joined Saudi Arabia in supporting an extension to OPEC supply cuts.
Global benchmark Brent crude, which Nigeria trades, according to Reuters, settled up $1.49 a barrel, or 3 per cent, to $50.22 a barrel.
In the 2017 Budget, President Muhammadu Buhari has pegged the projected price of crude at 44.5 dollars per barrel.
Global oil prices surged after the Organization of the Petroleum Exporting Countries, OPEC, agreed in November with some other producing countries to curb supply.
Nigeria, which along with Libya is exempt from OPEC cuts, is also expected to see a jump in output soon.
The oil producers will meet on May 25 in Vienna to discuss possibility of extension.
Ibe Kachikwu, Nigeria’s oil minister, had earlier hinted that he expected an extension in the cut.
“I expect we (Nigeria) will get OPEC exemption but one year from now will it be renewed? I am not too sure,” he said.
- Reuters