Prices of crude oil jumped to $57.095 per barrel on Friday, February 3, 2017 following the rising tension between the United States and Iran.
Crude oil price jumps over fear of possible sanction of Iran
The price increase was helped by the agreement reached by the Organisation of Oil Exporting Countries (OPEC) to cut output.
There are fears that President Donald Tump of the US is poised on imposing sanctions on Iran.
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With the current trend, there is a projection that the price could scale up to $60 per barrel before the end of the year.
Nigeria, a mono-economic country, relies majorly on crude oil for its revenue and budget performance. This is why each year’s budget is hinged on a particular crude oil benchmark.
Reuters is quoted as saying Brent crude futures rose to $56.84 a barrel from
It also quoted the National Australia Bank as saying on Friday, February 3, 2017: “The upward pressure on oil prices has been partly offset by rising U.S. production since October last year, which is expected to continue for the rest of 2017.
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“We now expect oil prices to average around the mid to high $50s in Q1 and Q2, before reaching the low $60s by end-2017 and stabilizing at around those levels in 2018.”
360naze
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