Wow this is a good improvement in oil price, According to report crud oil price hit $50.4 in global benchmark for the first time 2016.
Today report stated that crud oil has gain weight in price to $50.4 today MAY 25 2016. It happen that this is the first time crud oil price hit $50.4 since the beginning of this year 2016. This could have be a great benefit to Nigeria but unfortunate it not going to be due to recent militant attach on pipelines.
According to punch report gotten from BBC news! brent crude has now risen 80 per cent since it hit 13-year lows of below $28 per barrel in January this year.
Informationhood also understand that US crude oil inventories fell by 4.2 million barrels to 537.1 million barrels in the week to May 20, according to US Department of Energy data.
Report also stated that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had recently said the nation’s oil output had dropped to 1.4 million barrels per day from 2.2 million bpd.
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It also said that Canada is the biggest supplier to the US and wildfires in the western provinces have knocked out about a million barrels a day.
Short-term disruptions to oil supplies have also lifted the price, as they have offset higher production from Iran and Saudi Arabia.
As well as the disruption to key oil production facilities in Canada, attacks by militant groups continue to restrict oil pipelines in Nigeria.
Against this improving backdrop, analysts are starting to modestly raise their forecasts.
Goldman Sachs said earlier this month that it now expected oil prices to consistently hit $50 a barrel in the second half of 2016 and $60 by the end of 2017.
The US bank said, “The oil market continues to deliver its share of surprises, with low prices driving disruptions in Nigeria, higher output in Iran and better demand.
“With each of these shifts significant in magnitude, the oil market has gone from nearing storage saturation to being in deficit much earlier than we expected.”