Nigeria’s oil futures, including Brass River and Qua Iboe, experienced gains on Wednesday due to escalating conflicts in the Middle East and between Russia and Ukraine, coupled with a decreasing United States rig count.
Brass River, a sweet medium light crude, rose by 0.53 percent to $89.73 per barrel, while Qua Iboe, a light sweet crude grade, increased by 1.6 percent to the same price. Qua Iboe, produced by ExxonMobil from offshore fields and exported through the Qua Iboe Terminal, is favored for its high quality and low sulfur content.
Factors contributing to the uptick in oil prices include tightening physical markets, prolonged production cuts by OPEC and non-OPEC members, growing demand from major oil consumers, and heightened geopolitical tensions.
While the rise in crude oil prices could potentially boost funding for Nigeria’s 2024 budget, set at a benchmark of $77.96 per barrel, the country struggles to meet production quotas, limiting its ability to increase revenue from oil sales.
Source: Business Day