BREAKING: Oil Price Nears $100 Per Barrel As Russia-Ukraine Crisis Thickens
- The growing tension between one of the world's superpowers, Russia and its neighbouring country Ukraine appears to have taken a toll on the price of oil
- Reports have shown that the price of crude oil which is currently at $95 per barrel may hit a peak of $100 a barrel in due time
- However, this can be controlled should international talks aimed at ending the sanctions on Tehran become successful
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As Russia and Ukraine crisis continues, the global oil price has risen towards $100 per barrel on supply.
This is as worries over the tension growing between the two countries continue to escalate after Moscow ordered troops into two breakaway regions in eastern Ukraine.
Reuters reports that efforts by various governments to push for an economic rebound are however adding constraints to tight oil supplies across countries.
It was also gathered that this pressure on supply could peak the price of the oil which currently stands at $95 per barrel should international talks fail to end sanctions on Tehran.
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It is also perceived that should these sanctions fail to end, this could lead to a surge in Iranian exports.
The tension created by a possible disruption of exportation from Russia, a major oil producer, has successfully pushed the price of the product to its highest since 2014.
The nervousness of possible disruption of exports from major oil producer Russia as it masses troops on neighbouring Ukraine's border has already helped to push oil prices to their highest since 2014.
Oil nears $90, the Highest Level Since 2014 When Goodluck Jonathan Was President,
The price of oil raced towards $90 a barrel and it also traded at the highest level since the administration of Goodluck Jonathan.
Before the end of 2021, there was a flurry of projections that oil prices could hit $90 and $100 a barrel.
With reported disruption in the Middle East including a key pipeline running from Iraq to Turkey it is looking increasingly possible oil will hit $90 in days
According to Bloomberg, on the morning of Wednesday, 18 January 2021, crude oil price was sold at $88.69.
Wednesday's price represents an eight-day consecutive rise as demand continues to outweigh supply.
Nigeria's oil revenue performance
In the first eight months of 2021, Nigeria's oil output averaged 1.52 million barrels per day, compared to a budget of 1.86 million barrels per day and a capability of more than 2 million barrels per day.
Due to these difficulties, Nigerian oil revenue was N754.2 billion, or 43.7 per cent or N586.52 billion less than the N1.34 billion forecast in the 2021 budget.
Meanwhile, figures from the Nigerian National Petroleum Corporation indicated that subsidy payments increased to N1.15 trillion in the first 11 months of 2021.
Nigeria has only $60 million left in its excess crude account
Meanwhile, It is almost game over for Nigeria and one big withdrawal from the excess crude account could see it drop to an unredeemable state.
According to reports, Nigeria excess crude account has dropped significantly to just over $72 million.
Even with oil trading above the expected price, Nigeria cannot save its oil revenue for which the ECA is created.