$84.50 Price Could Favor FG Revenue Source

Better times are here for the Nigerian government as Brent Crude, Nigeria’s crude oil benchmark, hit $84.50 per barrel on Monday afternoon, according to data from the Nigerian National Petroleum Corporation (NNPC).

The product gained $2.11 per barrel to rise at 2.56%.

The rise follows ballooning demand for crude oil as more countries reopen for economic activities after a lull created by the COVID-19 pandemic.

The surge also sprang from a rise in demand for energy that resulted from rebound activities in the face of the refusal of the Organization of Petroleum Exporting Countries (OPEC) to increase supply.

Reuters reported that oil prices rose more than 2% on Monday, extending gains as an energy crisis gripping major economies shows no sign of easing amid a pick up in economic activity and restrained supplies from major producers.