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OPEC oil cut, US sanctions push oil price to $74.25, highest in 6 months
The international oil benchmark, Brent Crude, on Monday, increased by $2.28 to $74.25 per barrel to attain its highest level since late October 2018.
This is coming after the United States President, Donald Trump, announced the decision to end waivers that allowed some countries to buy crude oil from Iran without facing US sanctions.
In 2019 alone, the Brent, against which Nigeria’s oil is priced, has risen by about 40 per cent, thanks to production cuts by the Organisation of Petroleum Exporting Countries (OPEC).
Read also: Fire outbreak leaves Nigeria’s crude oil export on the decline
This development is expected to boost Nigeria’s foreign exchange reserves, which have been increasing in recent months.
As of April 17, the reserves rose from $42.296bn on February 28 to $44.736bn.
Meanwhile, the 2019 budget presented by President Muhammadu Buhari had benchmarked oil price at $60 per barrel with a targeted daily production of 2.3 million barrels.
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