…Rises above $61
The price of oil has recovered to its pre-pandemic levels as the international oil benchmark, Brent crude, rose further on Tuesday, trading above $61 per barrel.
Brent had hit the $60 per barrel mark on Monday for the first in more than a year.
The further rise in oil prices, having hit an all-time low last year,
comes amidst optimism for a vaccine-led economic recovery and a commitment by the Organisation of the Petroleum Exporting Countries, (OPEC) and its allies to restrain the supply of crude oil.
Brent, against which Nigeria’s oil is priced, increased by $0.53 to $61.09 per barrel as of 8:50 pm Nigerian time on Tuesday, while the United States West Texas Intermediate rose by $0.39 to $58.36 per barrel.
Brent has risen by more than 18 per cent since December 31, 2020, when it closed at $51.22 per barrel.
OPEC and its Russia-led allies, a group called OPEC+, announced last week that there was ‘high compliance’ among member states with agreements to limit supply to prop up prices.
Oil prices are often seen as a barometer for economic activity, still struggling with the virus downturn.
While demand for oil is still lower than normal, there are hopes of a speedier than expected economic recovery as vaccines are rolled out.