Crude oil price rose to $123.7 per barrel on Thursday, following higher demand for the black liquid as a result of the energy crisis caused by the Russian-Ukraine war.
This is its highest level in 14 years since 2008 when it sold for $145.31 per barrel.
According to oil price movement, in 2009, it sold for $81.03, while in 2010, 2011 and 2012, oil sold for $91.48, $113.39 and $109.39 per barrel respectively.
In 2013, the highest price of crude oil per barrel was $110.62, in 2014 $107.95 while in 2015, 2016, 2017, 2018, 2019, 2020 and 2021, it was sold for $61.36, $54.01, $60.46, $77.41, $66.24, $63.27, and $84.65 per barrel respectively.
The rise in oil prices was underpinned by robust demand in the world’s top consumers as the war between Russia and Ukraine intensifies.
The Organisation of Petroleum Exporting Countries (OPEC) has agreed to upscale production increase to tame runaway fuel prices and slow inflation.
However, experts said, the move will leave producers with very little spare capacity, and almost no room to compensate for a major supply outage.
Nigeria’s crude oil production averaged 1.42 million barrel per day in May which about is 70,000 bpd higher than the average crude oil production in April.
While there had been an increase in production, Nigeria is still struggling to meet up with its OPEC quota of 1.66 million barrels per day.
EIA’s data showed that apparent demand for all oil products in the United States rose to 19.5 million barrels per day (bpd) while gasoline demand rose to 8.98 million bpd, ANZ analysts said in a note.
Investors will scrutinise May trade data from China, due later on Thursday, for demand cues in the world’s No. 2 oil consumer. Shanghai, the country’s biggest business hub, emerged on June 1 from a two-month lockdown.
“China’s reopening continued to boost the demand optimism,” CMC Markets analyst Tina Teng said in a note.
Efforts by OPEC+ oil producers to boost output are “not encouraging”, UAE energy minister Suhail al-Mazrouei said on Wednesday, noting the group was currently 2.6 million bpd short of its target.