Bonny Light price dips to $62.05 on reopening of Suez Canal

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Oil Market: Bonny Light price dips to $62.05 on reopening of Suez Canal

By Udeme Akpan

The price of Nigeria’s Bonny Light, Tuesday, dropped to $62.05 per barrel from $64.50 in the international market on the heels of the reopening of the Suez Canal for business.

The blockage of the Canal by a container vessel for over one week had scuttled the free shipment of goods, especially crude oil around the world, thus causing prices of many crudes, including Bonny Light and Brent to rise to $64.50, and $65.30 per barrel respectively.

Traders, however, said yesterday, that prices would likely continue to dip, not only because of the reopening of the Canal, but also as a result of the resurgence of coronavirus pandemic in the United States and other economies.

Despite the price drop, Nigeria’s 2021 fiscal plan would not be adversely affected as the budget was benchmarked on $40 per barrel, and 1.8 per barrel output, including Condensate.

Nevertheless, the Organisation of Petroleum Exporting Countries, OPEC, disclosed that it was working towards…



Source: Vanguard Newspaper