Going by a report by S&P Global Platts, a global oil research firm, Nigeria’s Brent crude price will increase by between $2 and $3 per barrel in the coming weeks. This is attributed to stable demand and low volatilities.
Crude oil price, which stood at $48.27 per barrel, last week, are noe ecpected to rise to$51 per barrel or more. This will usher in a new era of affluence for Nigeria.
According to the Platts report, Nigeria will experience a slight surge in price of Brent crude, despite the recent increase in supply of crude oil globally, a development, which has threatened cut in oil production introduced by the Organisation of Petroleum Exporting Countries, OPEC, for its members.
Platts said the decision of the United States to increase its light crude and gasoline stockpiles has stoked fears that the global oil glut would remain unabated. “Overall, stable demand and low volatility are the factors that should push Brent prices up by $2 or $3 in the coming weeks. Oil tumbled to its lowest in five weeks as an unexpected increase in U.S. crude and gasoline stockpiles stoked fears that the global supply glut will remain unabated,” said the report.
The report also sited a recent forecast by the International Energy Agency that the global refinery is expected to go up by 2.7 million b/d between July and August with refineries processing almost 82 million b/d for the same period.
Quoting a report from the United States-based International Energy Agency, EIA, Platts said U.S drillers have added rigs for 20 straight weeks, the longest streak in at least three decades to increase production.
It added that the agency has published a forecast stating that the global refinery throughput is expected to go up by 2.7 million b/d between July and August, with refineries processing almost 82 million b/d for the same period.