The crude against which Nigeria’s oil is priced, Brent has moved up in price to $114/barrel as of 4.34 pm Nigerian time on Wednesday.
There is an increase of $3.72 or 3.37 per cent when compared to the previous day’s cost.
Its current rise in price is a result of the ongoing war between Russia and Ukraine.
The Organisation of Petroleum Exporting Countries raised the alarm that the crisis was also costing the energy market more than seven million barrels of crude oil daily.
OPEC’s Secretary-General, Sanusi Barkindo, disclosed this at the 61st meeting of the Joint Technical Committee of the organisation via videoconference. Nigeria is a strong member of OPEC.
He said, “Today, we are also confronting a war in Ukraine whose far-reaching consequences could reshape the geopolitical landscape as well as world order itself.
“This conflict has also compounded the uncertainties related to the pandemic by stoking economic volatility and further elevating risk premiums for oil and other essential commodities, given that both Ukraine and the Russian federation are key global exporters, including essential agricultural goods.
“The potential loss of more than seven mb/d (million barrels/day) of Russian oil and other liquids exports (around seven per cent of current global demand), either through sanctions or voluntary actions, is already having major repercussions on energy markets.”
