The price of crude oil at the international market strengthened to $62.90 per barrel on Monday, a 20 cent increase from last weekend’s closing price.
The strengthening of prices is unconnected with efforts of the Organisation of Petroleum Exporting Countries, OPEC, to withdraw excess oil from the volatile market on Monday.
The prices of Brent, West Texas Intermediate, WTI and OPEC basket stood at $62.90, $53.92 and $60.90 respectively.
With the current price, Nigeria is making extra $2.90 above the 2019 budget benchmark of $60 per barrel and also douse anxiety over the budget estimates.
Meanwhile, OPEC has disclosed that it looks forward to achieving increased market stability this year.
OPEC stated this in the latest edition of its Market Report.
The reports says: “In 2019, world oil demand is forecast to rise by 1.29 mb/d, also in line with last month’s projections. As a result, total world oil demand is projected to reach 100.08 mb/d for the year. Oil demand growth is expected to originate mainly from Other Asia, led by India, followed by China and OECD Americas.
“OECD countries are anticipated to rise by 0.25 mb/d in 2019, while non-OECD countries are projected to drive oil demand growth by adding an estimated 1.04 mb/d. World Oil Supply Non-OPEC oil supply growth in 2018 – including the State of Qatar – is estimated at 2.61 mb/d, an upward revision of 0.05 mb/d from the previous month’s assessment to average 62.06 mb/d.
“This compares to an average of 60.03 mb/d – excluding Qatar liquids supply – in the December MOMR. The US, Canada, Russia and Kazakhstan are seen to be the main growth drivers, while Mexico and Norway are estimated to show the largest declines.
“Non-OPEC oil supply growth in 2019 was revised down by 0.06 mb/d to 2.10 mb/d and is now forecast to average 64.16 mb/d for the year. This was mainly due to a downward revision in Canada’s supply forecast. The US, Brazil, Russia and the UK are projected to be the main drivers for this year’s growth, while Mexico and Norway are expected to see sizeable declines, along with a mild y-o-y decline of 0.05 mb/d in Canada.”