shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Proposed $57 Oil Benchmark, Production Level Will Determine Its Achievability — Expert

Proposed $57 Oil Benchmark, Production Level Will Determine Its Achievability — Expert

by Joshua
July 12, 2021
in Oil and Gas

The chairman of International Energy Services, Dr Diran Fawibe, has said that the newly proposed oil benchmark of $57 as revealed by the federal government will be determined by the Nigeria’s production level of crude.

Diran-Fawibe

Earlier, the federal government, through the Minister of Finance, Zainab Ahmed, had disclosed its intention to set a crude oil benchmark price of $57 per barrel at 1.88 million barrels a day for its 2022 budget.

The Minister said that the new crude benchmark would lift Nigeria’s current oil production from 1.47 million barrels per day to 1.88 million barrels per day, as the global economy reopens for business which has seen crude oil prices rise to their highest since 2018.

Nigeria relies on oil exports for more than half its budget and 95% of foreign exchange, but Ahmed added that the FG’s spending could rise by 3% to N13.98 trillion

While addressing newsmen on Thursday, he said “$57 per barrel against the present level of almost $70 per barrel, one will not consider it to be too high or too ambitious.”

Their current meeting on the 1st of this month which is last week was inconclusive as regards maintaining introduction.

He said though although there have been talks amongst some OPEC members for increased production level, an agreement has not been reached yet.

He said, “If the production level increases, we may not enjoy the high price we are currently having. The current price of oil that is over $70 and going to $80 will not be sustainable in the long time.

“In terms of $57 maybe we could sell that price but by September or October, we will be able to see and detect when OPEC has increased production and what impact that will have on the price.

Read Also:  ND Western Says 10,000bpd Refinery For Completion In 2023

“We expect that the price will still be over $60 per barrel going to next year. if that is the case $57 may not be too ambitious. Otherwise, I would have suggested that why don’t we make it $55 per barrel benchmark but it’s neither here nor there.

“Result will depend on what happened to production. Don’t forget that we shall be entering winter and demand is not as high as during summer.”

He added that “If OPEC production level is increased coupled with winter season that is almost beckoning, Nigeria may not enjoy as high price as they are enjoying now.

“Like China, India, and even Europe and America are also witnessing pullback during Covid restriction. All these may add to strong demand for oil that may counter balance the increase in production by OPEC,” he concluded.

shippingposition

Kindly like us on Facebook


Tags: Oil Benchmark

Related Posts

Nigeria’s Daily Crude Oil Production Drops To 937,766 bpd In September

Nigeria’s Crude Oil Export Revenue Drops by 17% to $6.68 Billion in First Two Months of 2025

June 1, 2025
President Tinubu Signs 6 IMO Instruments Of Accession

FG Rallies Stakeholders to Accelerate Nigeria’s Gas Revolution, Signs Agreement with Ten Equity Partners

June 1, 2025
The Return of Standards Organisation of Nigeria to the ports

SON Raises Concern Over Influx Of Adulterated Lubricants, Engine Oil

June 1, 2025
Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

June 1, 2025

Discussion about this post

Latest News

NPA Bags NASS PAC Transparency Award

NPA Bags NASS PAC Transparency Award

July 12, 2025

Nigeria Customs Says Claim Of Form ‘M’ Migration Charges False

CRFFN Showcases Reform Milestones, Dismisses Court Ruling Misinterpretation

NCMDLCA Faction Distances Self from Amiwero’s Court Action, Backs CRFFN on POF Collection

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

Customs, NAFDAC Inaugurate Implementation Committee for 2024 MoU

Nigeria Customs Intercepts Container with Over 10,000 Donkey Genitals

Senate Hails Adeniyi’s Election as WCO Council Chair, Says It’s  a Major Win for Nigeria’s Global Trade Leadership

Oyetola Launches Door-to-Door’ Diplomacy for Nigeria’s IMO Council Bid

FG Urged To Link Warri-Itakpe Rail To Inland Ports, Road Networks

Red Sea Operation Rescues 4 More From Cargo Ship Sunk By Houthis

Shippers’ Council Set to Establish Border Information Centre at Idiroko, Bolster Trade Efficiency

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition