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Excess oil revenue rises to $58m per day as price hits $76 per barrel

By Udeme Akpan
Nigeria’s excess oil revenue has increased from $48.3 million to $58 million per day as international oil price leaps to $76 per barrel Monday from $72.

A picture taken on September 16, 2015 shows workers trying to tie a pipe of the first refinery in Nigeria, which was built in 1965 in oil rich Port Harcourt, Rivers State. The Port Harcourt refinery is Nigeria’s oldest, built in 1965, nine years after crude was first found under the marshy soil and creeks of the delta, where the Niger river meanders to the Gulf of Guinea. Refineries in nearby Warri and Kaduna in the north central region were built in the years that followed, while a new plant was added to the same site in Port Harcourt in 1989. In recent years, however, it became a byword for corruption, a murky, state-run body where billions of dollars in revenue apparently disappeared. AFP PHOTO

The Federal Government had benchmarked its 2018 budget earnings at $51 and 2.3 million barrels oil output.

But the oil price which had hovered at between $70 and $74 in the past few weeks, rose to $76 per barrel on yesterday, thus, causing the nation’s excess oil revenue to swell.

Specifically, the price of Brent and WTI stood at $76 and $68.72 per barrel while that of the Organisation of Petroleum Exporting Countries (OPEC) basket stood at $71.75.

OPEC stated: “The price of OPEC basket of 15 crudes stood at $73.01 a barrel on Thursday, compared with $71.75 the previous day, according to OPEC Secretariat calculations.”

Market watchers expect price to leap further as OPEC has predicted possible rise in global oil demand, expected to drive developments in the market.

In its latest August, 2018 report, obtained by Vanguard, OPEC indicated that, “In 2018, oil demand growth is anticipated to increase by 1.64 mb/d, 20 tb/d lower than last month’s projections, mainly due to weaker-than-expected oil demand data from Latin America and the Middle East in 2Q18.”


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