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Oil Market: Crude oil price rises to $88.97 per barrel


Budget 2024 under threat as oil price drops to $76.53 per barrelTHE price of Nigeria’s Bonny Light, yesterday, rose by 2.2 per cent to $88.97 per barrel in the global oil market following increased tension in the Middle East resulting from Israel’s airstrike on Iran’s embassy in Damascus, Syria.

The increased tension   which fuelled speculation over possible shortage and higher prices, also impacted other crudes, including Brent.

The current price of $88.97 per barrel   amounts to excess revenue of $11 per barrel for Nigeria recorded excess   as the nation’s 2024 budget was based on $77.96 per barrel and 1.78 million barrels per day.

However, despite increased battle against oil theft, the nation has so far failed to meet budgetary targets of 1.78 million per day and with several refineries scheduled to come on-stream this year, concerns about the feedstock supply to the refineries have increased in the past month.

Speaking at a recent meeting to review Domestic Crude Oil Supply Obligation as contained under Section 109 (2) of the Petroleum Industry Act, PIA 2021, the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, Engr. Gbenga Komolafe insisted that priority must be given to crude supply to local refineries. Komolafe pointed out that the overall objective of the government was to ensure that Nigeria becomes a net exporter of refined petroleum products.

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