Prices of crude oil rose to $57.095 per barrel on Friday, February 3, 2017 following the rising tension between the United States and Iran.
There are fears that President Donald Trump of the US is poised on imposing sanctions on Iran.
The price increase was helped by the agreement reached by the Organization of Oil Exporting Countries (OPEC) to cut output.
Nigeria, a mono-economic country, relies heavily on the sale of crude oil for its revenue and budget performance, which is why each year’s budget is hinged on a particular crude oil benchmark.
Reuters reported that Brent crude futures rose to $56.84 a barrel from $56.56 previously.
It also quoted the National Australia Bank as saying on Friday, February 3, 2017: “The upward pressure on oil prices has been partly offset by rising U.S. production since October last year, which is expected to continue for the rest of 2017.
