Crude oil prices soar above $70 per barrel

The prices of crude oil in the international market on Monday rose above $70 per barrel, the first time since January 2020. The new regime was a function of an attack on oil facilities in Saudi Arabia. The prices of crude oil have been rising strongly on recovery and increasing demand.

The $70 per barrel oil price exceeds the benchmark of $40 per barrel in Nigeria’s 2021 budget. The Nigerian government is, therefore, at advantage to make more money to fund the budget. However, the multiplier effect is the rise in the pump price of petrol in the country which is a function of the Nigerian government to encourage processing or refining of crude oil in the country.

Meanwhile, Brent sold at $71.38, the highest since January 2020, but later fell back to under $70 per barrel.

There is rising optimism that the global economy is getting back on track.

It was highlighted that the attack on the Aramco facilities, in addition to one of the world’s biggest oil ports, by Yemen’s Huthi rebels on Sunday followed the bombing of the country’s capital Sanaa by a Saudi-led military coalition.

The rising hostilities was said to stimulate a dangerous intensification of Yemen’s conflict between the coalition-backed Yemeni government and the Iran-backed Huthis, in spite of renewed US interest and intervention to end the war in the gulf region.

The price index as of Monday showed that:

Brent North Sea crude: UP 0.2 per cent at $69.48 per barrel

West Texas Intermediate: UP 0.2 per cent at $66.23 per barrel