The latest increase in the price of Bonny Light to $79.08 per barrel from $76 per barrel in the global market has raised hope that Nigeria’s 2024 budget will be successfully implemented.
This indicates an excess of more than $2 per barrel when compared to the budget benchmark price of $77.96 and 1.69 million barrels per day oil output.
Based on the report, there was a general increase in the prices of many types of crude, due to a supply concerns generated by escalating geopolitical tension in the Middle East.
However, the Organisation of Petroleum Exporting Countries (OPEC) and its allies have expressed commitment toward achieving stability in the global market.
In a statement OPEC stated: “At the outset of 2024, the OPEC Secretariat in consultation with OPEC Member Countries and the non-OPEC producing countries participating in the DoC, re-affirms the full commitment by the countries participating in the DoC to unity and cohesion, as well as their continued and unwavering efforts to maintain oil market stability going forward through the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings.
“Moreover, OPEC Member Countries re-affirm their steadfast commitment to the shared objectives of unity and cohesion both within the Organization, and with the non-OPEC producing countries participating in the DoC.
“The extraordinary efforts by OPEC Member Countries and non-OPEC producing countries participating in the DoC have been evident in supporting the global economy to overcome the many challenges witnessed throughout the past several years, including the COVID 19 pandemic, and have ensured stability of the oil market especially when compared to other commodities”.