Brent crude reaches $80.41 per barrel for the first time since May 2023
The price of Brent crude has soared to $80.41 per barrel, marking its highest level since May 2023.
Nairametrics conducted an examination of the cost of crude oil on Wednesday, July 12 and found that the Brent crude standard exceeded $80 per barrel, marking its first time surpassing this point since May 2023.
According to Nairametrics' investigation, at 2:58 pm (GMT+1), the price of Brent crude oil stood at $80.41 per barrel, while Bonny Light crude oil was valued at $80.68 per barrel.
It's worth mentioning that starting from May 2023, the average cost of Brent crude has remained below $80 per barrel, even with the implementation of production reductions by the Organization of Petroleum Exporting Countries (OPEC) in June 2023.
Remember that in the OPEC meeting on June 4th, Nigeria consented to a limit on their daily oil production at 1.38 million barrels from January to December 2024.
During the gathering, both OPEC and Non-OPEC participants agreed to reduce their output levels to maintain stability in the worldwide oil market.
Meanwhile, at the 8th OPEC International Seminar that took place in Vienna, Austria, Gabriel Tanimu Aduda, the Permanent Secretary of Nigeria's Ministry of Petroleum Resources, expressed his confidence in Nigeria obtaining a larger quota. Aduda stated that Nigeria is actively and purposefully working towards accomplishing this objective.
If Nigeria can generate 1.7 million barrels of crude oil every day and the Brent crude benchmark remains higher than $80 per barrel, this indicates that Nigeria will earn more money from oil, provided that the issue of crude oil theft is addressed effectively.
During a conversation held outside of the OPEC Seminar, Aduda stated that despite the numerous security obstacles confronting it, the Nigerian oil and gas sector continues to attract investment from interested parties.
In his opinion, the security obstacles in Nigeria's oil and gas industry haven't completely deterred investors from putting their money into the industry.
He also mentioned that the influx of investments in oil and gas will contribute to the country's plans for transitioning to cleaner energy sources. Additionally, it is equally essential to prioritize investments in vital minerals required for the development of renewable energy technologies.
In his speech at the Energy Asia conference in Kuala Lumpur, Malaysia on June 26, Haitham al Ghais, the Secretary General of OPEC, stated that OPEC predicts a 23% rise in global energy demand by 2045. According to him, there is no viable solution to meet this increasing demand without making use of all the energy sources at our disposal. Furthermore, he emphasized the importance of maintaining stability in the energy market as a guiding principle.
Based on al-Ghais, OPEC predicts a significant increase in worldwide oil demand, reaching 110 million barrels per day by the year 2045. Additionally, despite advancements in alternative energy sources, oil will continue to constitute approximately 29% of the overall energy composition in that timeframe. al-Ghais further stated that the period spanning from now until 2045 will necessitate substantial investments in oil, amounting to a colossal $12.1 trillion or an annual expenditure of over $500 billion.
