Oil Price Jumps To $56 Per Barrel On Libya, Syria Crises
The price of crude Oil at the international market has continued to rise following the shutdown at Libya’s largest oilfield over the weekend and geopolitical tensions following last week's United States (U.S.) missile strike on Syria with the oil selling at $56 a barrel yesterday.
According to analysts, this development is good for the Nigeria economy, struggling to pull out of recession and 2017 budget yet to be passed into law by the National Assembly.
The executive arm set crude oil production benchmark at 2.2 million barrels per day
(bpd) at a price of $42.5 per barrel, but the Senate pushed the benchmark to $44.5 a barrel with hopes that the mainstay of the economy would remain at January rate of above $50.
However, an international agency, Fitch Ratings, said Nigeria needs crude oil price of $139 per barrel to achieve balanced budget in 2017. It said this makes the country worst in oil break-even point among 14 top oil
exporters.
Fitch made this known in a report on 14 major oil exporting nations in the Middle East, Africa and emerging Europe Libya's oilfield was shut on Sunday after a group blocked a pipeline linking it to an oil terminal, a Libyan oil source said. It could be recalled that the field had only just returned to production, after a week-long stoppage ending in early April.
According to analysts, this development is good for the Nigeria economy, struggling to pull out of recession and 2017 budget yet to be passed into law by the National Assembly.
The executive arm set crude oil production benchmark at 2.2 million barrels per day
(bpd) at a price of $42.5 per barrel, but the Senate pushed the benchmark to $44.5 a barrel with hopes that the mainstay of the economy would remain at January rate of above $50.
However, an international agency, Fitch Ratings, said Nigeria needs crude oil price of $139 per barrel to achieve balanced budget in 2017. It said this makes the country worst in oil break-even point among 14 top oil
exporters.
Fitch made this known in a report on 14 major oil exporting nations in the Middle East, Africa and emerging Europe Libya's oilfield was shut on Sunday after a group blocked a pipeline linking it to an oil terminal, a Libyan oil source said. It could be recalled that the field had only just returned to production, after a week-long stoppage ending in early April.
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