July 16, 2024

Positive Outlook for 2024 Budget as Bonny Light Hits $79 Per Barrel


By: Emmanuel Ibitoye


Amidst increasing optimism, there’s a favorable development for Nigeria’s 2024 budget as the Bonny Light price experienced an upswing, reaching $79.08 per barrel over the weekend, a notable increase from its previous standing at $76 per barrel in the global market.


This upturn signifies an encouraging surplus of more than $2 per barrel when measured against the budget benchmark of $77.96, coupled with a daily oil output of 1.69 million barrels.


A deeper look into the oil market dynamics reveals a widespread surge in the prices of various crude types. The driving force behind this trend is the growing supply concerns triggered by escalating geopolitical tensions in the Middle East. These concerns have significantly contributed to the overall increase in crude prices, influencing market dynamics on a global scale.


It’s noteworthy that the Organization of the Petroleum Exporting Countries (OPEC) and its allies have expressed their unwavering commitment to achieving stability in the global market. In an official statement obtained by Vanguard, OPEC emphasizes the full commitment of member countries participating in the Declaration of Cooperation (DoC) to unity and cohesion. This commitment extends to the continuous and resolute efforts to uphold oil market stability.


As we usher in 2024, the OPEC Secretariat, in consultation with member countries and non-OPEC producing countries involved in the DoC, underscores the dedication to shared objectives, emphasizing unity and cohesion within the organization and with non-OPEC producing countries participating in the DoC.


The statement further underscores the extraordinary efforts exerted by OPEC Member Countries and non-OPEC producing countries participating in the DoC. These efforts have played a crucial role in supporting the global economy throughout the challenges of recent years, notably the COVID-19 pandemic. Importantly, they have ensured stability in the oil market, setting it apart from the fluctuations witnessed in other commodity markets.


The positive trajectory of the Bonny Light price serves as a beacon of hope for Nigeria’s economic landscape, fostering expectations for a successful implementation of the 2024 budget. The concerted efforts of OPEC and its allies underscore a collective commitment to navigating the complexities of the global oil market and maintaining stability in the face of ongoing challenges.

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