Bonny Light Crude Projected to Hit $55/b by December – Thisday

Analysts at FBNQuest, an economic research and investment banking arm of FBN Holdings Plc, has predicted that the price of Bonny Light crude oil at the international market would hit $55 per barrel at the end of this year and further projected that for 2017 Bonny Light would sell at US$60/b (average) and would hit US$70 per barrel at end-2017.

Bonny Light crude oil is a high grade of Nigerian crude oil with high API gravity (low specific gravity), produced in the Niger Delta basin and named after the prolific region around the city of Bonny.

The firm, which recently released its Economic Outlook for August, obtained by THISDAY, also put the average price of the Bonny Light crude at $50 per barrel.

“We see an average price for this year for spot Bonny Light of US$50/b, with US$55/b at end-year,” it said.

Noting that, “The price was below US$30/b as recently as January, “ FBNQuest stated that, “Our take is that the market had oversold following the international deal with Iran.” The pick-up, it however added, could only be “gradual since the global supply and demand dynamics will not be supportive until late 2017.”