International oil price continues to trade above $100 per barrel despite the United States’ efforts to ensure the Russia, Ukraine crises does not put intense pressure on the energy market.
The US government on Thursday evening announced several economic sanctions for Russia but excluded the country’s energy companies and this immediately had a ripple effect.
Before the end of Thursday, the price of the Brent fell by 2.19 per cent or $2.12 to $98.96 per barrel.
But it did not last long as, by Friday morning, oil price returned to $101.83 per barrel.
Other countries to have announced sanctions include Canada, Britain, the European Union, Australia and Japan.
But similar to the US, the countries’ sanctions did not target Russian bank that deals in Russian oil and gas transactions.
Russia is the world’s third-biggest oil producer and the second-biggest natural gas producer.
So any crisis involving it was bound to roil energy markets and the global economy.
Nigeria misses out on huge windfall
The Organisation of Petroleum Exporting Countries (OPEC) at the last meeting approved for Nigeria to increase its oil production quota to 1.72 million barrels per day.
With oil trading above $100, that is $38 higher than its benchmark, Nigeria should have expected N71.5 billion from crude oil sale every day.
But several disruptions and challenges as highlighted by Timipre Sylva, Minister of State for Petroleum Resources, in our earlier report means Nigeria is missing out on a windfall.
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