Global Crude Oil Prices Rise Above 2016 Budget Benchmark

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Global crude oil prices on Monday traded above $39 per barrels surpassing Nigeria’s budgetary benchmark of $38 per barrel. The global oil benchmark rose an all-year high at $39.50 on Monday, from $27.10 on January 20, the lowest for Brent in 2016.

As at Friday, Nigeria’s bonny light, which is the third most expensive oil in the Organisation of Petroleum Exporting Countries (OPEC) basket, traded at a record high of $35.76 per barrel.

The Monday price of Nigeria’s crude has not been quoted by the Central Bank of Nigeria (CBN), but sources say the price may surge to the budget benchmark region of $38.

Brent crude opened 2016 at a high of $38.99 on January 4, 2016, though it traded at $36.77 on the same day, and closed the month around $35 per barrel. It opened February at $34.24and closed at $35.97. OPEC secretariat figures released on Monday show that the daily basket price stood at $32.34 a barrel Friday, March 4 2016, compared with $31.61 the previous day.

Nigeria’s 2016 budget was benchmarked at $38 per barrel against major criticism across the nation, following December 2015 prices of about $34 per barrel.