The price of crude oil, yesterday, dropped from $50 to $48 in the international market, showing $12 below Nigeria’s $60 per barrel 2019 budget reference price. Specifically, the price of Brent, West Texas Intermediate, WTI and the Organisation of Petroleum Exporting Countries, OPEC, basket of 15 crudes stood at $48.00, $43.38 and $47.92 per barrel respectively. Oil money This means that the government projections, especially total revenue projection and expenditure in the budget may not be realised, should the volatility continue in the market.
This came as there are indications that Nigeria’s Egina oil will hit the global oil market in February, 2019, according to loading programme. The loading programme obtained by Vanguard showed that the first cargo of the oil grade will be lifted by stakeholders, including Total, Nigerian National Petroleum Corporation, NNPC, and China National Offshore Oil Corporation, CNOOC. Total spokesman, Mr. Charles Ebereonwu, restated in a telephone interview with Vanguard yesterday, that efforts were being made by the company to deliver first oil before the end of December, 2018.
Before then, the company had stated that Egina was important, especially as it would add additional 200,000 barrel per day to its output. It will be recalled that in his Buhari budget breakdown obtained by Vanguard yesterday, President Muhammadu Buhari stated: “As a responsible administration, we will continue to monitor the situation and will respond to any changes in the international oil price outlook for 2019.”
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