By Dipo Olowookere

On Tuesday, the Brent crude oil extended its rally as Saudi Arabia and Russia ruled out immediate production increases, after the United States' call for increase in supplies by the top producers.

The commodity traded late on Tuesday at $81.80 per barrel at the global market after 17 cents or 0.21 percent, data obtained by Business Post showed.

The price of the Brent is projected to continue to rise at the market as the sanctions imposed by the US on Iranian crude exports take effect from November 4, 2018.

With the Nigerian government pegging its oil benchmark at $51 per barrel in the 2018 budget, the continue hike in the commodity is a welcome development.

Yesterday, the Central Bank of Nigeria (CBN) advised government to take advantage of the rising oil prices to save for the raining days.

It warned that if care was not taken, the country’s economy may witness another recession, which it fell into in 2016 and exited a year later.

Since going out of recession in the second quarter of last year, Nigeria’s economy, the largest in Africa, has struggled.

In the second quarter of this year, the Gross Domestic Product (GDP) slowed to 1.50 percent from 1.95 percent, giving analysts something to worry about. The contraction was caused by drop in the price of crude oil during the period under review.

At the international market, crude oil prices are expected to stay under pressure on the back of a deadlock on supply between the top producers and the world's largest economy, the United States.

President Donald Trump had asked members of the Organization of the Petroleum Exporting Countries (OPEC) and Russia increase their supplies to make up for the expected fall in Iranian exports, but they are adamant.

"Brent oil prices are set to rise further from current levels on supply disruption after Iran sanctions and a broader range of $80 to $90 per barrel looks achievable in the last quarter of this year," said Abhishek Bansal, founder and chairman of ABans Group of Companies.

The OPEC has 15 member countries including Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, the UAE and Nigeria. At the start of 2017, OPEC members and Russia, a non-OPEC supplier, together agreed to curtail output in an oversupplied market.

According to CARE Ratings, after the sanctions on Iran exports come into effect, oil prices “are likely to go even higher given an expected drop in supply from major producers Iran and Venezuela and political and price escalation prevailing in the markets.”

“Now, as the deadline of sanctions on Iran is nearing and as the OPEC and non OPEC countries have consistently shown their reluctance over increasing production, the latest phase of bull rally has become more and more impulsive,” said Gaurav Katariya, research head (commodity), Arihant Capital Markets. “$82 may be a short lived resistance as the rally is very impulsive and any correction of, say, 3 to 4 percent, from here will only bring in strong buying.”

https://www.businesspost.ng/2018/09/26/nigeria-smiles-as-brent-crude-oil-crawls-towards-82-per-barrel/

About time

This Buhari govt to save?
Wetin concern agbero with overload?
A Buhari govt that got billions of naira from Swizz refunds and was talking about sharing it (or is it loot) to his almajiris, then going cap in hand to beg for about the same amount as loan from foreign countries.
If no be mumu, what do u call that?
A govt that knows nothing about proper planning and management will definitely plunge into recession even with abundance.

Bit we ain't seeing the money


This time around the money is being shared by those in power,its not even circulating


Mtcchew

CharleyBright:
This Buhari govt to save?
Wetin concern agbero with overload?
A Buhari govt that got billions of naira from Swizz refunds and was talking about sharing it (or is it loot) to his almajiris, then going cap in hand to beg for about the same amount as loan from foreign countries.
If no be mumu, what do u call that?
A govt that knows nothing about proper planning and management will definitely plunge into recession even with abundance.

Your state Governor received from it


He used it to pay salaries and sponsor Nnamdi Kanu

otunde527:
Bit we ain't seeing the money


This time around the money is being shared by those in power,its not even circulating


Mtcchew

That era of emergency millionaires are over

Bye bye to looting

otunde527:
Bit we ain't seeing the money


This time around the money is being shared by those in power,its not even circulating


Mtcchew

That era of emergency millionaires are over

Bye bye to looting


It’s used for social infrastructure that will help your generation yet unborn

This kind of news will definitely give the likes of Atiku, Saraki and Co an orgasm. Not sexual anyway.
If you know you know!

Even if the price reaches $1000.
Nigerians will still be poor, corrupt, tribalist, inefficient, under developed, 3rd or 4th World, wasteful, liars/cheaters, over spenders, and criminals!
Tell me which country ever really developed from oil?

Nigerians can't smile yet , although it's good news , but too much has been lost already 82/b is nothing to write home about

Oboy , you don tire to dey burst pipe ?


ehehehehehe

even people wey dey do am dey fear this Buhari , Aisha just use her ADC rub am because he use her name collect bribe, wetin that one mean be say , nobody dey share any money for FG level, if you work you go chop, no dey wait for money wey go drop from shouting Tuale baba

otunde527:
Bit we ain't seeing the money


This time around the money is being shared by those in power,its not even circulating


Mtcchew

naijaking1:
Even if the price reaches $1000.
Nigerians will still be poor, corrupt, tribalist, inefficient, under developed, 3rd or 4th World, wasteful, liars/cheaters, over spenders, and criminals!
Tell me which country ever really developed from oil?

Could not have said it better myself.

Buhari can perform better now. So PDP should wait till 2031

Nothing to smile about as subsidy and the corruption associated with it will also increase...