Crude Price To Hit $71 Again, Oil And Gas Expert Predicts
There is more money coming to Nigeria, but one can only hope that the money would be put to effective use.
Crude oil price on Wednesday fell by about $0.51 and it is now $62.17, but there is prospect of an oil boom for the West African nation.
The global oil price rally tampered few weeks ago is expected to spike again and an oil and gas expert, the Managing Director of Sethill Energy, Seun Adegoke, says it will hit at least $71 per barrel in about 90 days.
“We are in a very big boom in the oil and gas sector right now and we just pray the country will be able to utilise the excess that will come from crude sales.
"In the next three months, the price of crude will hit at least $71 per barrel and that is a big income for Nigeria, he forecast.
He is not worried about Nigeria’s competitors even in Africa because Nigeria’s has what he described as sweet crude while referring to the unique quality of Nigeria's oil reserves.
“It makes us thrive better than Ghana, the oil and gas expert said.
One of the factors that will propel the increase, according to Adegoke, is the decision by OPEC and its partners to curb supply after Russia attained a higher production capacity.
It is a move targeted at draining the global inventory, he explained.
Even though countries have continued to compete to make sure that the price of crude becomes stable, the decision of the International Energy Agency to raise its forecast for 2018 by 100,000 barrels per day to about 1.4 or even 1.5 million is a sign that there would be a rally in coming months.
However, Mr Adegoke said the porosity of Nigeria's system has become an issue that should be checked.
"So many bad eggs that are known to be within the cabal has spoilt the image Nigeria has as a patent,” he said.
President Muhammadu Buhari has said that excess funds from crude oil sales would be channelled into infrastructure development.