Oil prices jump above $65, as Nigeria Libya exempt
Brent crude oil prices jumped above $65 per barrel after the shutdown of the Forties North Sea pipeline knocked out significant supplies from a market that was already tightening due to Organisation of Petroleum Exporting Countries (OPEC)-led production cuts.
The News Agency of Nigeria(NAN) reports that Brent crude futures on Tuesday, the international benchmark for prices of crude, were at $65.07 dollars a barrel at 0211 GMT.
U.S. West Texas Intermediate (WTI) crude futures were at 58.21 dollars a barrel.
Britain’s Forties oil pipeline, the country’s largest at a capacity of 450,000 barrels per day (bpd), shut down on Monday after cracks were revealed.
“The market reaction shows that in a tight market, any supply issue will quickly be reflected in higher prices,” said ANZ bank.
The jump in Brent prices widened its premium to WTI prices, making U.S. oil exports more attractive.
At it crucial meeting last week, both Nigeria and Libya got exempt by OPEC over security situation in the Niger Delta region and post- Ghadafi crisis in Nigeria and Libya, respectively.
Crude oil, Nigeria’s main foreign exchange earner, is expected to contribute significantly to revenue xport drive and revenue generation in 2018.
President Muhammadu Buhari’s N8.12 trillion 2018 Buget is predicated on oil benchmark of $45bp/d before it was increased to $ 47 bp/d by the House of Representatives.
Kogi state has started enjoying improved electricity supply and the is ready to savour the services of the completed Geregu Power Plant.
Ganiyu Obaaro, with Agency Report
