Oil price climbs to $69pb

FOR THE first time in two years, the price of oil
has climbed to its highest level, with Brent crude
hitting above $69 per barrel.
As of Wednesday, the oil price touched $69.26
per barrel, the highest since June, 2015.
The latest rally has been due to the production
cuts imposed by the Organisation of the Petroleum
Exporting Countries (Opec) and decline in oil
inventories.
Analysts said the increase stoke hopes in the
industry that the market has finally turned a
corner following a three-year downturn.
Vijay Valecha, chief market analyst at Century
Financial Brokers, said the major reasons
behind oil’s recent rally is the extension of the
Opec agreement and the lowest level of crude
inventories.
“We expect Brent prices to move further higher
to more than $75 due to an increase in demand.
Europe remained the major destination of
Nigerian crude grades, accounting for 36.59 per
cent of the total sales, with Asia and the Far East
receiving 28.43 per cent, according to Group
General Manager, Crude Oil
Marketing Division, Malam Mele
Kyari on Tuesday.
He said 16.57 per cent of
Nigeria’s crude grades were
exported to North America,
13.17 per cent to Africa, 2.84
per cent to South and Central
America, while the rest of the
world served as beneficiaries for
the rest. Meanwhile as OPEC is
implementing production cuts,
Nigeria’s crude oil exports are
steadily growing and winning
huge customers in Europe.
Europe remained the major
destination of Nigerian crude
grades, accounting for 36.59
per cent of the total sales, with
Asia and the Far East receiving
28.43 per cent, according to
Group General Manager, Crude Oil Marketing Division, Malam Mele Kyari on
Tuesday.
He said 16.57 per cent of Nigeria’s crude grades
was exported to North America, 13.17 per cent to
Africa, 2.84 per cent to South and Central America,
while the rest of the world served as beneficiaries
for the rest.
Meanwhile, for the third consecutive year,
the gale of transparency and innovation in the
marketing and management of Nigeria’s crude oil
grades was sustained on Tuesday as a total of 254
indigenous and foreign owned entities submitted
bids for the sale and purchase of the Federal
Government equity crude under the 2018/2019
crude oil term contracts.
The exercise which was beamed live on a
national television network was also witnessed
by officials of the Department of Petroleum
Resources (DPR), Nigeria Extractive Industries
Transparency Initiative (NEITI), Nigerian Content
Development and Monitoring Board (NCDMB),
as well as representatives of the civil society. Eventual winners are expected to be offtakers
licensed to trade on the Nigeria’s equity
crude for a 12 months period. Nigeria’s crude
oil allocation is done once every month to only
successful companies.
Addressing the prospecting off-takers shortly
before the commencement of the bid exercise,
Group Managing Director of the Nigerian
National Petroleum Corporation (NNPC),
Dr. Maikanti Baru, said that the exercise was
designed to promote greater participation of
Nigerian enterprise, while preserving Worldclass
standards. He assured that the best practices
would be adopted in the selection of bidders, as
he promised fairness and just treatment in the
process.
“I wish to remind the general public that the
Crude Oil Term Contract is not a Procurement
Contract but a process of selecting partners for
the sale and procurement of NNPC Equity crude
oil volumes,’’ Dr. Baru clarified during the bid
opening session