As the proposed meeting by oil producers, aimed at freezing output levels draws nearer, Global oil benchmark-Brent crude, rose on Monday, trading around $43 per barrel.
Brent, against which Nigeria’s oil is priced, stood at $42.71 per barrel at the time of filing this report, having touched a session high of $43.06, the highest level since December 7, 2015. Prior to this, President Muhammadu Buhari had proposed $38 per barrel as benchmark oil price for this year, which was recently approved by the National Assembly.
The Organisation of Petroleum Exporting Countries and other major suppliers, including Russia, are to meet on April 17, 2016 in Doha, Qatar, to discuss an output freeze aimed at bolstering prices.
While analysts at Goldman Sachs cautioned that the outcome of the meeting in Qatar could prove bearish for the market, reports say oil traders are optimistic on the oil producers’ meeting to prop up crude prices that have been severely depressed by a global supply glut.