Price of crude oil peaked at $49.25/barrel in the international market, coming to sector players in Nigeria as good news as it was considered as evidence of a boost in demand as nations get around the COVID-19 pandemic.

Observers note the price last Friday is the highest level since March 5, 2020. The latest price is coming a day after major producers agreed to ease their oil output cuts next year more gradually than previously planned — giving a fragile market more time to absorb the extra supply.

Brent crude, the international benchmark for Nigeria’s crude, gained a 1.13 percent increase, while the West Texas Intermediate (WTI), the United States crude benchmark, was up by 1.03 percent at $46.06.

Experts described the latest increase in crude oil price as good news for Nigeria, crude oil sales accounts for a bulk of the government’s income and about 90 percent of Nigeria’s foreign exchange earnings.

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Source: OrientEnergyReview