- There is an increase in the price of Brent crude which spiked to $120 per barrel following Saudi Arabia's plan to hike prices in July
- The Brent was bullish on Monday pushing above the $120 per barrel benchmark as OPEC+ members said they will hike prices in August
- The hike comes as OPEC+ also decided to increase production by N640 barrels per day which is a 50 per cent increase
If all goes to plan, the Nigerian economy is set to make a huge rebound with Brent Crude selling for $120 per barrel.
With a global benchmark, the Brent began a bullish push above the $120 threshold after major producer, Saudi Arabia increased prices for its crude sales in July, showing a tight supply following the OPEC+ agreement to boost increases in the next two months.
US Investigating Binance’s BNB Token, world's 5th largest crypto coin, as over N1.5tn is wiped out in hours
Saudi Arabia's plan pushing oil price
The price of Brent went up to 0.80 per cent and currently trades at $120.63 per barrel after it touched an intraday trading high of $121.95, which extended a 1.8 per cent gain on Friday.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through firstname.lastname@example.org!
According to Nairametrics, the US benchmark, West Texas Intermediate crude futures also went up by 0.8 per cent, trading at $119.80, gaining 1.7 per cent on Friday, June 3, 2022.
One of the world’s largest producers of crude oil, Saudi Arabia increased the price of its Arab Light crude to Asia to a $6.50 premium as against the average of the Oman and Dubai benchmarks, from a $4.40 premium in June, according to Aramco, the country’s oil producer said.
Price increase also caused by Russia/Ukraine war
The July OSP is the highest since May 2022 when prices hit an all-time high due to concerns about disruptions brought about by the unjust invasion of Ukraine by Russia.
Bloomberg report said that the increase in prices comes as the decision was reached last week by OPEC+ to hike production in July and August by 640,000 barrels per day, or 50 per cent as planned previously planned.
Nigeria, other African countries hit jackpot as Europe rushes to Africa for gas supply
Legit.ng reported that Russia’s invasion of Ukraine has created a huge energy crisis in Eastern Europe as more countries boycott Russian gas and oil.
To stop its over-dependence on Russian energy, Europe is looking towards Africa for its natural gas imports.
Experts say there are serious bottlenecks and low supply challenges to tackle.