By Ediri Ejoh with Agency report
Crude oil prices hit a year-record high of $46 a barrel yesterday, giving Nigeria a buffer of $8 over its $38 a barrel 2016 budget benchmark, a feat, which it has not attained since January.
Specifically, Brent crude rose by 77 cents from a session low this morning to hit $46 a barrel by 7.50am UK time, while the US, West Texas Intermediate (WTI) futures were up by 19 cents from $43.62 to $44.37 a barrel.
Crude oil prices have been rising since beginning of the week despite the failure of talks at the weekend between the world’s largest oil producing countries that were intended to tackle oversupply by freezing production.
Hope that the global crude oil prices will continue to rise was further boosted yesterday, as the United States (U.S.) onshore crude oil production in the lower 48 states is expected to decline from an average of 7.41 million barrels per day (bpd) to 6.46 million bpd in 2016 and to 5.76 million bpd in 2017.