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Oil Market: Bonny Light slides to $71.24 per barrel on U.S. stock, Delta variant

THE price of Bonny Light, Nigeria’s premium crude oil grade, Wednesday, dropped to $71.24 per barrel from $72 recorded the previous day, over fears of increasing United States stock and the spread of Delta variant.

The price of Bonny Light and other crudes had risen to over $75 per barrel in July 2021, due mainly to improved vaccination during the period.

But the current slide would not affect the execution of Nigeria’s 2021 budget, which was benchmarked on $57 per barrel and 1.8 million barrels per day, (excluding Condensate), as the nation also produces between 300,000 – 400,000 of Condensate daily.

However, the availability of commercial stock in the US, stated: “Oil prices fell for the third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles, negative U.S. economic reports and worries the spread of the coronavirus Delta variant will weigh on global energy demand.

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