The international oil benchmark, Brent crude, extended its decline on Monday, trading below Nigeria’s $60 per barrel budget benchmark.
Brent, against which Nigerian crude oil is priced, dipped by $2.10 to settle at $59.79 per barrel as of 7.45pm Nigerian time. It plunged to around $61 per barrel last Thursday from $65 on Wednesday.
The 2019 budget, which was signed by President Muhammadu Buhari in May, was based on oil production of 2.3 million bpd (including condensates) with an oil benchmark price of $60 per barrel.
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In October 2018, Brent crude hit a record high of $86.74 per barrel, a development that spurred the Federal Executive Council to peg the price of crude oil for the budget at $60 per barrel, up from $50.5 for the 2018 budget.
Source: Punch Newspaper.
