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The price of Bonny Light, Nigeria’s premium oil grade, has risen further from $66.07 to $67.37 per barrel in the global market, as the Organisation of Petroleum Exporting Countries, OPEC, moves to enforce its recent 500,000 barrel per day, BPD oil output cut.
According to OPEC, total cuts from different nations, including United Arab Emirates, Kuwait, Iraq, and Russia are expected to culminate in the withdrawal of 1.7 million BPD from the market, thus pushing oil prices to about $70 per barrel in 2020.
This means that Nigeria could record over $9.00 per barrel excess revenue should oil price remains stable as the government had already benchmarked its 2020 budget reference price at $57.00 per barrel.
