Crude rises to $89/barrel

With Agency Report

The price of crude oil in the international market, essentially, Brent crude, now sells at $89.3 per barrel in the month of September 2023.

US West Texas intermediate crude now sells at $85.45 per barrel.

Meanwhile, crude oil production in Nigeria, according to the GMD of NNPCL, Mele Kyari, has increased to 1.6 million barrels per day.

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Apparently, Nigerian government would be reaping over $142.88 million daily from sales of crude oil at the current price in the international market for the month of September.

It was indicated that oil supplies in the international market had been checked since Russia agreed to cut exports by 300 thousand barrels per day in September following a five hundred thousand barrels per day cut in the month of August.

Meanwhile, in Nigeria, the government may consider options of more crude output to boost revenue generation in the country.

President Bola Tinubu had since assumption of office of office implemented certain rash policies, including removal of petrol subsidy by fiat, to reduce fiscal burden on the federal government and shore up more revenue for government.

However, rising price of crude oil in the international market often has devastating and consequential effects on the Nigerian economy which is preponderantly dependent on importation of petrol. Invariably, while government ought to be celebrating revenue boost from the rising price of crude in the international market, the same government would b astronomically increasing the pump price of petrol in the domestic economy, selling petrol at high prices.

Countries with rational leaders would, however, have reasons to smile smile as the price of crude4 rises in the international market.

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The big exporters may hold on to supply cut to stabillise rising price of crude in the international market.,