Oil Price Hits 2-year High At $69.26/barrel
Crude oil price reached a two year high Wednesday with Brent trading at $69.26 per barrel.
The latest rally is the highest the commodity had traded for since June, 2015.
The climb has been due to the production cuts imposed by the Organisation of the Petroleum Exporting Countries (OPEC) and decline in oil inventories.
Analysts said the increase stoke hopes in the industry that the market has finally turned a corner following a three-year downturn.
“We expect Brent prices to move further higher to more than $75 due to an increase in demand,” Vijay Valecha, chief market analyst at Century Financial Brokers, said.
The climb is good for Nigeria which depends on oil proceeds for budget implementation. The country has had huge budget deficit in the years since the drop in crude prices. Europe remains the major destination of Nigerian crude grades, accounting for 36.59 percent of the total sales, with Asia and the Far East receiving 28.43 percent, according to data from Nigeria’s state owned oil firm, the Nigerian National Petroleum Corporation.