Hope is rising for the country and its N6.08 trillion 2016 budget as the price of crude oil yesterday settled at $46.61 per barrel.The cheering news came as the World Bank expressed its readiness to assist the Nigerian National Petroleum Corporation (NNPC) technically and financially to achieve its 20-point development goals.
Due to several production cuts in the market, crude oil has spiked far above the Federal Government’s 2016 budget benchmark, which was pegged at $38 per barrel to provide some buffer for the national treasury.
With the $38 per barrel benchmark and a production estimate of 2.2 million barrels per day, this year, oil-related revenues are expected to contribute about N820 billion.
Although the actual export is still about 1.6 million bpd, analysts believe that the crude oil price would rebound when the Shell Petroleum Development Company (SPDC) fixes its Trans-Forcados pipeline and halts the force majeure on Forcados grade.
Sweet crude (Nigerian grade) for June delivery rose $1.40, or 3.3 per cent, to $44.04 a barrel on the New York Mercantile Exchange, the highest settlement since November 10. Read more