By Ismail Auwal
On Friday, crude oil prices surpassed $93 per barrel for the first time since October 1, 2014.
The demand for the product has reportedly surged while the demand remains constrained.
Nigerian Government in December 2021, paid N270 billion as subsidy.
According to CNBC the U.S. oil benchmark, gained more than 2% to trade as high as $90.23 per barrel.
The last time prices were above the $90 mark was October 2014. International benchmark Brent crude rose 1.7% to trade at $91. Brent topped $90 on Jan. 26.
Oil prices have risen in recent months as countries have relaxed curfews and lifted travel restrictions.
OPEC and its oil-producing allies, known as OPEC+, decided on Wednesday to stick to a previously announced schedule and increase March output by 400,000 barrels per day.
The move comes as the group has been under pressure, including from the United States, to increase output in order to alleviate the rapid rise in oil prices.
The oil market also benefited from the Ukraine crisis, which raised concerns about potential supply disruptions.
The rise in global crude oil prices should portend an upturn for Nigeria’s revenue — but subsidy payments shortchanged the government.