Crude Oil Prices Surge to $89.3 Per Barrel in September 2023

In a significant development, the international crude oil market has witnessed a remarkable surge in prices this September. Brent crude, a benchmark for global oil prices, is currently commanding a price of $89.3 per barrel, while the US West Texas Intermediate crude is not far behind, selling at $85.45 per barrel.

Nigeria, a prominent player in the global oil market, has also seen a boost in its crude oil production. According to Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), the country is now producing 1.6 million barrels per day. This surge in production could potentially translate into substantial revenue for the Nigerian government.

It was indicated that oil supplies in the international market had been checked since Russia agreed to cut exports by 300 thousand barrels per day in September following a five hundred thousand barrels per day cut in the month of August.

Meanwhile, in Nigeria, the government may consider options of more crude output to boost revenue generation in the country.

President Bola Tinubu had since assumption of office of office implemented certain rash policies, including removal of petrol subsidy by fiat, to reduce fiscal burden on the federal government and shore up more revenue for government.

However, rising price of crude oil in the international market often has devastating and consequential effects on the Nigerian economy which is preponderantly dependent on importation of petrol. Invariably, while government ought to be celebrating revenue boost from the rising price of crude in the international market, the same government would b astronomically increasing the pump price of petrol in the domestic economy, selling petrol at high prices.

Countries with rational leaders would, however, have reasons to smile smile as the price of crude4 rises in the international market.

The big exporters may hold on to supply cut to stabillise rising price of crude in the international market.,

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