Crude Oil Rise To $39 Per Barrel

The price of Brent crude, the global oil benchmark, rose to an all-year high of $39.50 from $27.10 on January 20, the lowest for Brent in 2016.

The Global crude oil prices finally surpassed Nigeria’s budgetary benchmark, yesterday trading above $39 per barrels.

This came as experts on the economy have cautioned the Federal Government to be frugal with the revenue accruing from the rise in oil price, so as to steer the country from the current economic downturn.

The price of Nigeria’s crude has not been quoted by the Central Bank of Nigeria (CBN), but sources say the price may surge to the budget benchmark region of $38. Nigeria’s 2016 budget was benchmarked at $38 per barrel against major criticism across the nation, following December 2015 prices of about $34 per barrel.

Wilifred Iyiegbuniwe, professor of finance at the University of Lagos, said though the increase will have a positive impact because the inflow of foreign currency will improve, the benchmark should not be reviewed. He said: “Any recovery of the oil proceeds should go to a special fund. The economic team and the Federal Government should determine what should be done with it.