Reserves rising again as Nigerian crude hits $39

Nigeria’s foreign reserves are on the rise again, as the Central bank of Nigeria (CBN) confirmed on Thursday that the Nigerian crude, bonny light, is trading at $39.07 per barrel.

The current selling price, which is above the 2016 budget benchmark of $38 per barrel of crude by $1, is also the highest point for Bonny Light in 2016.

According to the latest figures from the central bank, the reserves rose to $27.88 billion following a nine-day rising streak from $27.82 billion at the beginning of the month.

The reserves had a four-day rise in February, the very first of such, since President Muhammadu Buhari took office in May 2015.

On the other hand, Brent crude – the global benchmark for crude oil prices – is trading at $40.07 per barrel on the international market.

According to OPEC secretariat, the daily basket price, which is the average of 13 crude oil variant, stood at one of its 2016 record high of $35.05 a barrel on Wednesday.

President Buhari and Udo Udoma, minister for budget and national planning, have come under fierce criticism for pegging the national budget for 2016 at an oil benchmark of $38 in December, when oil sold less than $35.

The crude oil prices were said to be rallying, following plans by the Organisation of Petroleum Exporting Countries (OPEC) and some Latin America oil producers to stabilise prices.
The new turn of events, regarding increase in crude oil prices would mean some sort of surpluses for the Nigerian budget, if they persist.