By Prince Okafor
Despite significant rises in world’s leading crude oil grades in the international market yesterday, Nigeria’s crude oil grade, Bonny light, declined to $110 per barrel from $111.5 per barrel recorded last Friday.
Crude oil prices at the international market witnessed average three per cent rise yesterday as the release of reserves by major consuming nations failed to eliminate supply fears arising from Russia’s war on Ukraine.
According to prices obtained from the international market, Brent crude was up $3.19, or 3.1 per cent, at $107.58 a barrel, while the West Texas Intermediate gained $3.46, or 3.5 per cent, to $102.73.
Meanwhile, according to the Organisation of Petroleum Exporting Countries, OPEC, Secretariat calculations, the price of its basket of 13 crudes stood at $104.90 a barrel on Friday, compared with $107.74 the previous day.
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“The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).”
An oil broker with PVM, Stephen Brennock said: “Will the release of barrels from strategic reserves fill a shortfall caused by sanctions and buyer aversion to Russian oil? In a word, no.”
Crude dropped by about 13 per cent last week after US President Joe Biden announced a record US oil reserves release and as International Energy Agency members committed to further tapping reserves. Crude had hit $139 last month, its highest level since 2008.
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