The price of Brent crude rose to $55.61 per barrel on Wednesday, up 26 cents from the previous day in what will be good news to oil dependent Nigeria.
The Nigerian government has repeatedly lamented the impact of the fall in global oil prices on its economy which is suffering from a recession. The current Muhammadu Buhari administration has pledged to diversify the economy with a focus on agriculture and solid minerals.
Nigeria was one of the oil producing OPEC members that agreed to a reduction in oil export to help bolster oil prices which have been low for over a year, going below $40 dollars a barrel. The country was, however, exempted from the slash due to not being able to meet its original quota caused by militancy in the oil producing Niger Delta region.
To ensure proper preparation for any fall in oil price, the Nigerian government projected an oil price of $42.5 per barrel in the 2017 budget.
On Wednesday, the U.S. dollar held near 14-year peaks as global yield spreads moved inexorably in its favour, while a falling yen lifted Japanese shares to a one-year top.
U.S. crude futures were up 32 cents at 53.62 dollars a barrel, while benchmark Brent crude futures added 26 cents to 55.61 dollars.
The Nikkei added 0.3 per cent in thin trade, while Australia’s main index climbed 0.6 per cent to its highest in 17 months after Wall Street racked up more records.
Japan’s government upgraded its overall assessment of the economy on Wednesday, echoing a more upbeat view from the Bank of Japan’s delivered the day before.
The dollar index, which measures it against a basket of currencies, stood at 103.100 having touched 103.65, its highest since December 2002.
The euro was a fraction firmer at 1.0413 dollars. On Wall Street, the Dow ended just 25 points shy of the magical 20,000 barrier helped by a 1.68 per cent gain in Goldman Sachs.
Stocks have been on a tear since the November 8 presidential election, with the Dow up nine per cent and the S&P 500 6 per cent on bets that President- elect Donald Trump’s plans for deregulation and infrastructure spending might boost profits and growth.
The Dow rose 0.46 per cent on Tuesday, while the S&P 500 gained 0.36 per cent and the Nasdaq0.49 per cent. Eight of the 11 major S&P sectors rose, led by a 1.23 per cent jump in the financial index.
After the bell, Nike rose 3 per cent on a strong quarterly report from the sports apparel seller. European shares scaled 11-month highs on Tuesday as Italy’s banking index rose 2.3 per cent