Crude oil price begins rise above budget benchmark amidst fears of sudden fall
Good results are beginning to emerge on recent Organisation of Petroleum Exporting Countries (OPEC) drive to withdraw excess oil from the volatile market as oil prices for the first time in 2019, jumped from $60.00 to $62.70 per barrel.
Recall that Nigeria’s budget benchmark had been $60, thus the rise has added about $2.70 to the Excess Crude Account (ECA) which had been in the red in the last few months.
Specifically, the prices of Brent, West Texas Intermediate, WTI and OPEC basket stood at $62.70, $53.80 and $59.63 respectively.
Referring to its latest report, OPEC expressed optimism that stability was gradually returning to the market, which witnessed price drop from $85.00 in October to $50.00 in December 2018, especially as the Joint Ministerial Monitoring Committee, JMMC, was working to achieve the mission.
OPEC added that “The Joint Ministerial Monitoring Committee, JMMC, has expressed its utmost satisfaction with the steady and robust achievements of the two-year old ‘Declaration of Cooperation’ between OPEC and participating non-OPEC oil producing countries.”
“The Joint Ministerial Monitoring Committee, JMMC, has expressed its utmost satisfaction with the steady and robust achievements of the two-year old ‘Declaration of Cooperation’ between OPEC and participating non-OPEC oil producing countries.
“The JMMC noted that countries participating in the ‘Declaration of Cooperation’ achieved an overall conformity level in November 2018 of slightly below 100%, hitting 98% for the month.
Business Hilights recalls that the World Bank recently recalibrated Nigeria’s GDP growth rate in 2019 from the insignificant 1.9% to a hopeful 2.9% based on chances of steady rise in global crude oil prices.
