Budget 2023: Fear Grips FG Over Drops In Oil Price

Afimag.com –

The recent decline in oil price during the weekend mounts fear on federal government. The price of Nigeria’s premium oil grade, Bonny Light, has fallen to $73.87 per barrel, from $76.37 last week.

The Federal Government had pegged the 2023 budget at $75 per barrel and 1.8 million barrels per day (BPD), including condensate that Nigeria has the capacity to produce over 300,000  barrels per day.

Global economic melt down with some developed countries that buy commercial oil from Nigeria and other major oil nations brought the fall out in price.

A report obtained by AFIMAG from research organisation, Goldman Sachs clarified that global economic lapses had horrendous impact on oil price. It also stated that oil has earlier hit $100 per barrel this year, which it had earlier predicted.

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According to Goldman Sachs, the existing impoverished state of the global economy that had already topped in the collapse of two big banks in the United States.

The report further revealed that the world is expecting oil price to glide around $94 per barrel in the next 12 months, before dock at $97 per barrel in 2024.

“Oil prices have plunged, despite the China demand boom given banking stress, recession fears, and an exodus of investor flows,” it said.

Meanwhile, in its March 2023 Monthly Oil Market Reports, the Organisation of Petroleum Exporting Countries, OPEC, noted that Nigeria’s oil production rose month-on-month (MoM), by 3.8 per cent to 1.306 million bpd in February 2023, from 1.258 million bpd recorded in the preceding month of January 2023.

Also, on year-on-year (YOY), the nation’s oil production increased by 3.8 per cent to 1.306 million bpd in February 2023, from 1.258 million bp/d recorded in the corresponding period of 2022.