Oil prices race to $80

Oil prices race to $80 as US drilling rises

All you wanted to know about sanctions on Iran

Crude oil prices have increased more than 10% over the past month after President Donald Trump signaled it is likely the US will withdraw from a 2015 global agreement with Iran that eased sanctions in return for curbs to the country's nuclear program, the Wall Street Journal reports.

At the current price, Nigeria generates $33.0 per barrel as excess revenue, amounting to $75.9 million per day.At the current oil price, the excess crude oil account is expected to reach $76 million per day, about 16.2 per cent, up from $65.4 million recorded in April, 2018. By 0800 GMT, Brent was up 20 cents at $78.43. However, the cartel also revised higher the non-OPEC supply forecast by 10,000 barrels per day, which does not come as a surprise given the rising U.S. oil output. Industry analysts also said the market situation was further fuelled by the success of the Organisation of Oil Exporting Countries, OPEC and Non-OPEC members to withdraw excess crude from the market.

The surge in oil prices comes at a time of tight supply amid record Asian demand and voluntary output restraint by the Organisation of the Petroleum Exporting Countries and non-OPEC producers, including Russian Federation.

USA crude is trading at a hefty discount to Brent, the global marker, thanks to sharp rises in U.S. production to 10.7-million bpd, which has left the American domestic oil market well supplied.

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Alongside a broader escalation in regional conflict, Citi economists argue a sustained increase in oil prices and weaker-than-anticipated global economic growth could combine to heighten the risk for financial market participants, CNBC reported.

OPEC figures published on Monday showed that oil inventories in OECD industrialised nations in March fell to 9 million barrels above the five-year average, down from 340 million barrels above the average in January 2017.

U.S. shale oil production is expected to rise by about 145,000 bpd to a record 7.18 million bpd in June, the U.S. Energy Information Administration said on Monday. The Permian basin in Texas, the biggest United States oil patch, is expected to see output climb 78,000 bpd to a fresh record of 3.28-million bpd.

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