Global oil price hits $71.28 pb

For the first time in 2021, the price of oil has risen to $71.28 per barrel in the international market, barely a few days after the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC members had resisted pressure to increase output.

Prior to the crucial 14th Meeting of OPEC and non-OPEC ministers, which took place via video conference on Thursday, March 4, 2021, the oil price had hovered at about $65 per barrel.

But close monitoring of the market by Vanguard showed that the price, fuelled by the continued removal of excess supply, started surging towards $70, before hitting the current level on Monday, March 8, 2021.

Specifically, while the price of Brent increased from $65 to the current $71.28 per barrel, the price of Nigeria’s Bonny Light, hovers at $67.69 per barrel, showing an excess of almost $30 as the nation’s 2021 budget was based on $40 and 1.8 million barrels per day, mb/d, including condensate.

Suzan O/REU