‘Femi Asu
Global oil benchmark, Brent crude, on Thursday traded
above $50 per barrel for the first time in 2016 as
supply disruptions and increased global demand
continue to fuel a recovery.
Brent, against which Nigeria’s oil is priced, hit $50.14
per barrel at 8:30am, data from Energy Intelligence
showed.
The rise followed US data on Thursday showing that oil
inventories had fallen, largely due to supply disruptions
following fires in Canada.
Brent crude has now risen 80 per cent since it hit 13-
year lows of below $28 per barrel in January this year.
The difference between the global benchmark and
Nigeria’s budget benchmark has now risen a little above
$12 per barrel. But the recent disruptions to oil output
occasioned by militant attacks have prevented the
country from benefitting from the increase in oil price.
The Minister of State for Petroleum Resources, Dr. Ibe
Kachikwu, had recently said the nation’s oil output had
dropped to 1.4 million barrels per day from 2.2 million
bpd.
US crude oil inventories fell by 4.2 million barrels to
537.1 million barrels in the week to May 20, according
to US Department of Energy data, the BBC reported.
Canada is the biggest supplier to the US and wildfires in
the western provinces have knocked out about a million
barrels a day.
Talks in recent months between the Organisation of
Petroleum Exporting Countries and Russia about
freezing oil production had already helped prices
recover.
Short-term disruptions to oil supplies have also lifted
the price, as they have offset higher production from
Iran and Saudi Arabia.
As well as the disruption to key oil production facilities
in Canada, attacks by militant groups continue to
restrict oil pipelines in Nigeria.
Demand has also been better than expected from major
economies such as China, India and Russia.
Against this improving backdrop, analysts are starting to
modestly raise their forecasts.
Goldman Sachs said earlier this month that it now
expected oil prices to consistently hit $50 a barrel in
the second half of 2016 and $60 by the end of 2017.
The US bank said, “The oil market continues to deliver
its share of surprises, with low prices driving
disruptions in Nigeria, higher output in Iran and better
demand.
“With each of these shifts significant in magnitude, the
oil market has gone from nearing storage saturation to
being in deficit much earlier than we expected.

www.punchng.com/oil-price-hits-50-first-time-year/

Great news if Niger Delta Avengers and other ND terrorists will let us benefit from it.

And if they choose otherwise, na all of us go suffer am.

So, PMB and his team got it absolutely right to use $38 as the benchmark even when the price then was hovering just above $30. That was some gut there.

Great

Sai Buhari

Nigeria production reduced from about 2.5 million barrels to about 1.5 million barrels.

many analyst believe that this NDA attack will increase the price of oil internationally.

one of the reason most oil producing nation will gladly want to sponsor NDA to continue their act. so that oil price could hit 100$ sooner. other countries with weaker and porous security might as well be attacked my sponsored of their militant to invade their oil communities.
anything that's works to increase oil price for the benefit of serious oil nation is welcome.

in economies

1, more supply is equal to less demand which will crashed price.

2, less supply is equal to more demand which will increased price.

And so, the Avengers don blow everything finish.
Iron man, please beg your fellow super men

Good news