Oil price rises to $39, beats budget benchmark
Global crude oil traded above $39 per barrel yesterday, surpassing Nigeria's budget benchmark price of $38 per barrel.
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, in order to steer the country from the current economic downturn.
The price of Brent crude, the global oil benchmark, rose to an all-year high of $39.50 yesterday, from $27.10 on January 20 – the lowest for Brent in 2016.
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.
A week ago, Udoma said the country may have to review the budget benchmark as early as June, based on the recurrently low crude oil prices. 'The benchmark of $38 per barrel of price of oil is not sacrosanct because of the subsisting global environment,' he had said. 'If at mid-year there is no improvement, we will come back to you for mid-term review. The review may come as quickly as June this year.' Vanguard