Global Oil Prices Jumps To $69.16 Following US Airstrike At Baghdad Airport

The Global oil prices jump to $69.16 per barrel on Friday, following the United States of America airstrike that killed top Iranian General, which many believe could increase the tension in the oil-rich Middle East.

The AM News reports that the global oil prices have jumped to nearly $3, as the US conducted an airstrike at the Baghdad Airport early on Friday, killing Major-General Qassem Soleimani, who was reportedly the architect of Iran’s spreading military influence in the Middle East.

 

Prices of international oil benchmark, Brent crude, has increased to $69.16 per barrel, its highest since September 17, 2019, before easing to $68.81 per barrel as of 8:30 pm on Friday.
Also, the US West Texas Intermediate rose by $2.03 to $63.21 per barrel, having initially increased to $63.84 a barrel, its highest since May 1, CNBC reported.

However, Iran’s Supreme Leader Ayatollah Ali Khamenei is said to be threatening severe retaliation against the perpetrators of the airstrike that killed his top general.
The United States embassy in Baghdad, which witnessed security breaches following the attack has urged American citizens to depart Iraq immediately due to heightened tensions between the US and Iran.

The AM News correspondent learnt that Iran analyst, Mr. Henry Rome, an Eurasia’s has said that “We expect moderate to low-level clashes to last for at least a month and likely be confined to Iraq, Iran will also likely resume harassment of commercial shipping in the Gulf and may launch military exercises to temporarily disrupt shipping,” he said.

What Nigeria stands to gain: Oil workers will be paid N75 billion worth of salaries in 2020, meaning there is going to be an oil boom says The Am News Business analysts have stated that oil is no longer the biggest driver of foreign inflows in Nigeria, adding that in 2018, oil accounted for 26% of CBN USD inflows (Q119:23%) vs over 90% before 2015, the sad reality is that the country still depends majorly on oil revenue to fund governance and infrastructural development. This means Nigeria is still exposed to volatility in the global oil market.

Nigeria’s 2020 budget has a benchmark oil price of $57 and an output target of 2.18 million barrels per day.

Increased tension between the US and Iran might potential continue to drive global oil prices up, meaning increased revenue for the Nigerian government to foster economic development and service its growing debt stock.

Should things happen as expected, the Nigerian economy may be adversely affected depending on those managing the trend.