The global oil benchmark, Brent crude oil, fell below $90 per barrel on Wednesday, signalling a further dip in Nigeria’s oil revenue.
Minister of Finance, Budget and Planning, Zainab Ahmed, said the government was projecting total revenue of N8.46 trillion in 2023 out of which N1.9 trillion is expected from oil-related sources while the balance would come from non-oil sources.
Ahmed had said explained that crude oil price is pegged at $70 per barrel at the exchange rate of N435.57 per dollar, and oil production is put at 1.69 million barrels per day
As of 17.50 WAT yesterday, Brent traded at $82.55 per barrel, a development that may not augur well for Nigeria in the face of dwindling oil revenue.
Nigeria in the past months has consistently failed to meet its Organisation of Petroleum Exporting Countries (OPEC) 1.83 million barrels per day quota due to massive oil theft, among other constraints.
The country lost 90,000 barrels per day in August, or roughly 2.8 million barrels in the month, making last month’s production of 1.43 million BPD one of the lowest in five years.
Minister of Finance, Budget and Planning, Zainab Ahmed stated that the government is projecting total revenue of N8.46 trillion in 2023 out of which N1.9 trillion is expected to come from oil-related sources while the remaining balance is to come from non-oil sources.
Ahmed explained that crude oil price is pegged at $70 per barrel at the exchange rate of N435.57 per dollar, and oil production is put at 1.69 million barrels per day
Oil demand concern and weaker than expected economic news from China have reversed the gains oil prices booked on Monday after OPEC+’s meeting, with both Brent crude and WTI opening trade on Wednesday with losses.
China’s weak economic data and stringent zero-COVID policy continued to add to demand concerns, leaving the price of the international benchmark crude futures down by $4.83 to $88 a barrel, with the United States West Texas Intermediate (WTI) crude down by $4.94 or 5.7 per cent to $81.94 per barrel, its lowest since January.
Demand outlook remains a bearish weight on oil prices with the largest crude importer in the world, maintaining its zero-COVID lockdown policy that now has some 65 million people under a restricted movement regime.
