Oil price, on Monday, rose to a record high, nearly hitting
the $90 a barrel mark.
Brent crude, global oil benchmark, rose to $89.03 — the
first time in 10 months; while US West Texas Intermediate rose to $85.95 a
barrel.
The increasing oil prices have been said to be driven by
cuts from Saudi Arabia and Russia –
Organisation of Petroleum Exporting Countries (OPEC) leaders — which are
expected to announce their next line of action in the coming days.
Saudi Arabia has taken the lead in efforts to maintain
global oil prices, making large voluntary output cuts.
In April, Saudi Arabia and some members of the OPEC and its
allies, called OPEC+, announced voluntary cuts amounting to 1.66 million bpd.
At the oil cartel’s meeting in June, the Saudi Arabi also
made another voluntary cut of one million bpd from July.
Additionally, in July, the country extended its voluntary
oil output cut of one million barrels per day (bpd) until August.
Saudi Arabia is expected to extend its voluntary one million
bpd cut for a fourth consecutive month into October, according to a Reuters
report.
Meanwhile, Alexander Novak, Russian deputy prime minister,
had said Moscow had agreed with OPEC+ allies on the terms for continued export
cuts in October.
The rise in the price of Brent crude, Nigeria’s oil
benchmark, is projected to push up the international spot price of petrol,
which is a primary predictor of the commodity’s price in Nigeria in the
post-subsidy regime.
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