Crude Oil Prices Surge to $92.79 per Barrel Amid Nigeria’s Production Struggles, Fuel Price Implications

The latest discovery on the Nigerian economy shows that the price of Bonny Light crude oil increased to $92.79 per barrel, which was a significant increase from the $90.88 per barrel recorded last Tuesday.

The increase was a result of the extended output cuts implemented by top oil-producing countries globally.

Russia, which is regarded internationally as one of the major players in the oil market, made a decision to reduce its daily crude oil exports by an additional 300,000 barrels until December 2023.

Also, Saudi Arabia maintained that it would continue to produce 1 million barrels per day until October 2023. These measures taken by Russia and Saudi Arabia are done to stabilize oil prices while also addressing market dynamics.

So far, the recent price of $92.79 per barrel is the highest recorded in 2023 - the figure surpassed the budget benchmark price of $75 per barrel, which showed an increase of $17.79.

This is what analysts at Goldman Sachs Commodities Research predict,

  • These supply cuts could potentially propel oil prices to reach an impressive $107 per barrel by 2024. The anticipation of such a surge is leaving both experts and market participants closely monitoring the situation.

However, speculation has it that the price of petrol will soar with the increase in crude oil prices.

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