Crude Oil: Prices soar to $67.23 per barrel, highest in eleven months

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The prices of crude oil has risen in a fourth straight session to hit $67.23 per barrel, which makes it the highest level in more than 11 months.

According to Nairametrics, this was influenced by monetary easing policies and lower crude production in the United States.

While this meant a surge in revenue for Nigeria, it indicated a higher price for petroleum products in the country for the month of March.

Nigeria depends largely on proceeds from crude oil to service over 80 per cent of its budget pegged at $45 per barrel price in the 2021 budget. Brent crude futures for April gained 19 cents, 0.3 per cent, to $67.23 a barrel by 0400 GMT.

On the other hand, the U.S. West Texas Intermediate crude for April was at $63.30 a barrel, up 8 cents, 0.1 per cent.

Both contracts touched their highest since January earlier in the session with Brent at $67.44 and WTI at $63.67.

An assurance from the U.S. Federal Reserve that interest rates would stay low for a while boosted investors’ risk appetite and global financial markets.

It was reported that a rare winter storm in Texas has caused U.S. crude production to drop by more than 10 per cent, or one million barrels per day (bpd) last week, the Energy Information Administration said.

Fuel supplies in the world’s largest oil consumer could also tighten as its refinery crude inputs had dropped to the lowest since September 2008.

The Organization of Petroleum Exporting Countries (OPEC) and their allies, including Russia, a group known as OPEC+, is due to meet on March 4.

The group will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.

Extra voluntary cuts by Saudi Arabia in February and March have also tightened global supplies.

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