Nigeria is about to witness another oil boom and huge revenue spike as the price of the country’s headline crude, Bonny light rose to $101 per barrel on Friday, above the prices of Brent crude and US headline West Texas Intermediate (WTI) crude for the first time since July 2014, this is as a result of the show of force between Russian and Ukraine.
The US WTI and Brent Crude, as at noon of Friday, were traded for $92.09 and $97.54 respectively, while Bonny light was traded for $101.
EnergyDay gathered that the prices of both Brent and Bonny Light witnessed a switch within 24-hour after Brent crude oil had earlier been traded for well over $103 per barrel. As at Thursday, the Nigeria’s crude traded for $97 per barrel.
Bonny light crude, with an API of 32.9, classified as light oil, is produced in Niger Delta and was named after the city of Bonny where it is largely sourced from. The crude oil grade has low sulfur content ranging between 0.14 percent and 0.16 percent by world standards. It is regarded as more valuable than the other oils with lower API.
It is therefore in high demand due to its low corrosive effects on refinery infrastructure and the low environmental impact of its byproducts.
Recall that the FG had in the 2022 allocation, approved a N17.126 trillion ($38 billion)on an oil price benchmark of $62 per barrel and production of 1.88 million barrels per day.
With the new price of above $101 per barrel, the Nigeria’s Bonny light crude now sells for about $39 higher than the projections for the 2023 budget.
Goldman Sachs reports had earlier projected an oil price of $100 per barrel by the end of 2022 and $105 per barrel in 2023.