TUE. 06 DEC, 2022-theGBJournal| Last week, the price of Brent rebounded, ending three consecutive weekly losses. Brent closed up 2.3 to settle at US$85.57/bbl.
Consequently, Brent is now up 10.02% year-todate and has traded at an average of US$100.53/bbl, 41.82% higher than the average of US$70.89/bbl in 2021.
Oil prices were aided by rumors circulating of China’s easing of lockdown restrictions after bouts of protests and industrial action.
Elsewhere, the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to maintain the plan to cut output by 2.0 mbpd from November in order to lessen the impact of the EU import ban and the Group of Seven (G7) US$60/bbl price cap on Russian oil.
With Russia threatening to cut supply to any country adhering to the price cap, oil prices rallied.
We maintain that prices are likely to remain well above the US$73.00/bbl set in Nigeria’s government budget.
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