Experts Celebrate Oil Price At $66

By Ikenga Chronicles January 1, 2018

Experts Celebrate Oil Price At $66

As the international oil benchmark, Brent crude, closed 2017 around $66.87, experts celebrate the development for Nigeria.

This is after the Wall Street Journal, in a survey of 15 investment banks, predicted that Brent crude would average $58 per barrel this year, up from an average of $54 in 2017.

The Vice President/Head of Energy Research, Ecobank, Mr. Dolapo Oni, who gave his reaction, said “It [$66 oil price] is definitely good for Nigeria. The good thing is that over the last few years, we tend to start the year at a price and then end at a higher price.

“We have had to update our forecast and we are seeing a possibility of higher prices of about $75, which will be fantastic for Nigeria. When you have this kind of price in the market, it also gives some support to oil production from some costly fields.”

Also, the Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, celebrated the rise to $66 in 2017, saying it might come back to the $60-$65 range.

“Having said that, even at $65 per barrel, the Nigerian revenue equation is quite positive, compared to previous years. So, we are in a good place.”

“But what we do with the revenue in terms of investment, inclusive growth and stimulating economic activities is the issue,” he stated.

Brent crude prices finished on Friday at $66.87 per barrel, up by 18 percent for the year and 49 percent above its 52-week low in June, following a series of supply disruptions. The WTI prices, meanwhile, gained 12 percent to end at $60.42 in 2017.

Also, recall that The 2018 budget proposal submitted by President Muhammadu Buhari in November put the benchmark oil price at $45 per barrel, compared to $44.5 per barrel for the 2017 budget.