Oil price climbs back to $76, highest in recent time

By Udeme Akpan

THE price of crude oil yesterday rose to $76.62 from $74.17 to per barrel in the global market following limited inventories in the United States and Iran sanctions.

Investigation by Vanguard showed that the price of some light crudes, including Nigeria’s Bonny Light surged toward $77 per barrel in the London market, yesterday.

It also showed that the price of Brent rose from $74.70 to $76.54 per barrel, while the price of West Texas Intermediate (WTI) and Organisation of Petroleum Exporting Countries, OPEC, basket of 15 crudes stood at $69.32 and $74.75 per barrel respectively.

Consequently, Nigeria’s excess oil revenue has surged significantly as the government had pegged its 2018 budget at $51 and 2.3 million barrels per daily.

Market watchers expect price to leap further as OPEC has already predicted possible rise in global oil demand, expected to drive developments in the market.

In its latest August, 2018 report, obtained by Vanguard, OPEC indicated that, “In 2018, oil demand growth is anticipated to increase by 1.64 mb/d, 20 tb/d lower than last month’s projections, mainly due to weaker-than-expected oil demand data from Latin America and the Middle East in second quarter, 2018, (2Q’18).

“Total oil demand is anticipated to reach 98.83 mb/d. For 2019, world oil demand is forecast to grow by 1.43 mb/d, also some 20 tb/d lower than last month’s assessment. Total world consumption is anticipated to reach 100.26 mb/d. The Organisation for Economic Co-operation and Development, OECD, region will contribute positively to oil demand growth, rising by 0.27 mb/d YoY , yet with growth of 1.16 mb/d, non- OECD nations will account for the majority of growth expected.” 

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