Politics: Crude oil price is heading towards $90 per barrel and it is a goodnews for Nigeria

With the global oil benchmark above $85 a barrel, it means an extra of $30 in revenue will be accrued to the federation account.

Global crude oil is heading towards to $90 per barrel, the highest since 2014 as a result of looming sanctions against Iran by the US.

Brent crude oil futures – the oil market which Nigeria and other international giant trade on – rose to $85.11 a barrel at the open of the market on Tuesday, October 2, 2018, according to data seen on oilprice.

While U.S. West Texas Intermediate (WTI) crude futures still below the $80 per barrel mark at $75.66 a barrel.

US reimposes sanctions on Iran

In August 2018, the United States reimposed sanctions on Iran, targetting Tehran's energy sector.

 

The sanction comes into effect on November 4, 2018, and it is designed to cut crude exports from the third-biggest producer in the Organization of the Petroleum Exporting Countries (OPEC).

Other international oil traders, including China's Sinopec, have also signalled to cut deal with Iranian oil

Nigeria in the mix

The Nigerian government has pegged crude oil price at $51 per barrel in the 2018 budget with a daily production of 2.3 million per barrel per day.

With the global oil benchmark above $85 a barrel, it means an extra of $30 in revenue will be accrued to the federation account.

Jubril Kareem�, an oil and gas expert in a tweet on Monday, said, “Oil at $85/barrel. Trump's policy on Iran is Making Nigeria Great Again.�

Kareem, however, said Nigeriaâ€s policy on subsidising PMS will probably erode most of the greatness.

As 2019 presidential elections draw nearer, the government needs to work out ways for the economic prosperity for the 6th largest producer oil and biggest economy in Africa.

President Muhammadu Buhari who is seeking re-election for another 4-year term has hinged under-performance on dwindling oil price compared which pushed the country into economic recession in late 2016.

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Politics: Crude oil price is heading towards per barrel and it is a goodnews for Nigeria

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