By Eyo Nsima
The average price of Nigeria’s Bonny Light, rose month-on-month, MoM to $82.36 per barrel in January 2023, from $80.69 per barrel in December 2022, indicating an increase of two percent.
The Organisation of Petroleum Exporting Countries, OPEC February 2023 Monthly Oil Market Report, MOMR obtained by The Daily, https://thedaily-ng.com also stated that on year-on-year, YoY, the price indicated a decrease to $82.36 per barrel in January 2023, from $86.85 per barrel recorded in the corresponding period of 2022.
At the current price of $82.36 per barrel, Nigeria recorded an excess of $7.36 per barrel when juxtaposed against the $75 per barrel reference price of the $21.8 trillion budget.
However, OPEC remained hopeful that the oil market would remain relatively stable due mainly to its planned interventions in the remaining period of 2023.
Commenting on the global oil demand, OPEC, stated: “World oil demand growth in 2021 is revised up slightly by 17 tb/d, reflecting the latest data trends across the regions, to now stand at 5.7 mb/d. Both 3Q21 and 4Q21 figures for OECD Americas are revised higher, mainly as a result of the better performance in the US, confirming the upward revisions taken last month.
“Overall, non-OECD growth in 2021 increased by 3.1 mb/d while the OECD recorded growth of 2.6 mb/d. In the OECD, the US continued to be the major driver of oil demand, recording growth of 1.6 mb/d. In 2022, oil demand growth is expected at 4.2 mb/d unchanged from last month, with OECD and non-OECD projected to grow by 1.8 mb/d and 2.3 mb/d, respectively.
“In the OECD, optimism arises from economic growth with the supportive effects of fiscal and monetary policies expected to more than offset the negative effects from Omicron on oil demand. Industrial activities are also anticipated to accelerate, boosting diesel demand. Meanwhile, mobility has recovered substantially with domestic, regional and international flights already showings signs of recovery.”
