Hope rises on 2024 budget as Bonny Light price hits $79 per barrel

There is optimism surrounding the successful implementation of Nigeria’s 2024 budget, fueled by the rise in the price of Bonny Light to $79.08 per barrel over the weekend, up from the global market’s $76 per barrel. This represents a surplus of over $2 per barrel compared to the budget benchmark of $77.96, coupled with a daily oil output of 1.69 million barrels.

A broader examination reveals a general increase in the prices of various crude oils, attributed to concerns about supply triggered by escalating geopolitical tensions in the Middle East. Despite these uncertainties, both the Organization of the Petroleum Exporting Countries (OPEC) and its allies have affirmed their dedication to achieving stability in the global market.

According to a statement obtained by Vanguard, OPEC emphasized their commitment to unity, cohesion, and ongoing efforts to maintain oil market stability. The Declaration of Cooperation (DoC), initially signed on December 10, 2016, and subsequently endorsed in subsequent meetings, serves as a cornerstone for these collective efforts. The statement further underscores the remarkable contributions of OPEC Member Countries and non-OPEC producing countries participating in the DoC, supporting the global economy amid challenges such as the COVID-19 pandemic and ensuring oil market stability, particularly in comparison to other commodities.