Nigeria’s Bonny Light Experience Price Rise, Records $24.59

Crude oil prices recorded a drastic improvement at the international market, as Nigerian leading Crude, Bonny Light sold at $24.59 per barrel on Thursday.

Brandnewsday learned that the International Energy Agency (IEA) had predicted in its early May oil Market reports that there would be lower global inventories in the second half of 2020. However, some quarters have predicted a huge return of the Coronavirus Pandemic which might leads to another total lockdown in some countries.

Meanwhile, the Nigeria leading grade crude, Bonny Light has recorded a jumped in its sales at $24.59 per barrel against $23.52 per barrel recorded on Wednesday. Although this was Bonny Light highest prices sale for about two months.

According to information from oilprice.com, Nigeria’s headline crude, Bonny light, approached the $27 mark rising to $26.96 per barrel.

Read: Crude Oil Demand Jumps, As Brent Crude Surges To $31.55

Consequently, crude oil prices seem set for third consecutive weeks of gains. As the oil market is bouncing back to its fits, it is an indication of the resurgence of top oil producers setting back their tracks through shipments and hike in demand.

Crude Oil Prices: International Grades Prices Surges

Furthermore, other international grades, Brent and WTI recorded marginal increases, traded at $30.13 and $24.58 against Wednesday ’s trade of $29.10 and $23.12 per barrel respectively. Meanwhile, the American headline crude, WTI experienced a negative sales last month against its recent sales of $27.59 per barrel.

As the coronavirus has disrupted several countries economy across the globe, the early intervention of the idea of easing lockdown as yielded. The crude oil prices have surged in the last two weeks.

Also, the International Energy Agency disclosed that the outlook for global markets is improving, with demand getting a little stronger than expected. In addition, the IEA forecasts crude stockpiles to reduce by about 5.5 million barrels per day in the second half of the year.

As more countries are easing their coronavirus lockdowns, output cuts by OPEC+ and other top oil-producing countries like the United States, Canada, and others have started to gain supply excess.

Similarly, in an effort to ease the fiscal budget challenge, the Federal Government of Nigeria has approved a further downward revision of the oil benchmark for the 2020 budget from $30 per barrel to $25 per barrel.

Read: Global Oil Price Surges, As Nigeria’s Bonny Light Crude Jumps To 22.7%