Why is Global Oil hitting over $85 a barrel, a blessing for Nigeria.   

03 October 2018 : Fueled by the impending sanctions against Iran by US, the global oil benchmark is headed to $90 a barrel, highest since year 2014.


Brent crude oil futures - the oil market which Nigeria and other international giants rely on - skyrocketed to $85.11 a barrel at the open of the market on Tuesday, on the other hand, U.S. West Texas Intermediate (WTI) crude futures still below the $80 per barrel mark at $75.66 a barrel.


According to President Trump’s request-for-world-peace-tweet, “The Iran sanctions have officially been cast. These are the most biting sanctions ever imposed, and in November they ratchet up to yet another level. Anyone doing business with Iran will NOT be doing business with the United States. I am asking for WORLD PEACE, nothing less!”


The sanction will come into play on November 4, 2018, and is basically cutting the cord in terms of crude exports from the third-largest producer in OPEC. Following the same trend, China's Sinopec, have also signalled to cut deal with Iranian oil


How will this make Nigeria great again?


According to the 2018 budget, the Nigerian government pegged the crude oil price at $51 per barrel, enforcing a daily production of 2.3 million per barrel per day. The global oil plummeting over $85 a barrel translates to an additional $30 in revenue, which will be accrued to the federation account. But, where there is good cop, there is bad cop as well; Nigeria’s policy on subsidising PMS will abrade most of the greatness.


Reporting for EasyKobo on Wednesday , 03 October 2018 in Lagos, Nigeria


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