September 29, 2021

OIL PRICE: Bonny Light surges further to $78.22

Crude oil price hits $65.85 per barrel after OPEC, Non-OPEC meeting

By Udeme Akpan

The price of Nigeria’s  Bonny Light, Tuesday, rose further to $78.22 per barrel, from $77.40, recorded the previous day, as the Organisation of Petroleum Exporting Countries, OPEC, presents its 2021 World Oil Outlook (WOO) in Vienna, Austria.

This showed an excess of $21.22 per barrel over the 2021 budget benchmark of $57 per barrel.

Commenting on the development, an energy analyst with Goldman Sach Group, Damien Courvalin, said: “While we have long held a bullish oil view, the current global supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above-consensus forecast and with global supply remaining short of our below consensus forecasts.

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“Brent could hit $90 a barrel by year-end as the market is in a bigger deficit than many realize.

“This deficit will not be reversed in coming months, in our view, as its scale will overwhelm both the willingness and ability of Organisation of Petroleum Exporting Countries, OPEC+ to ramp up.”

In an email to Vanguard, the organisation also stated: “This includes analysis of the industry’s various linkages and its shifting dynamics, providing insights into energy and oil demand, oil supply and refining, the global economy, policy and technology developments, demographic trends, environmental issues and sustainable development concerns.”

Vanguard News Nigeria