On Monday, oil prices surged to nearly $90 a barrel, reaching record highs.
Brent crude, the worldwide oil benchmark, climbed to $89.03 per barrel, marking the first time in 10 months that it had reached this level. US West Texas Intermediate also rose, reaching $85.95 per barrel.
The increasing oil prices have been said to be driven by cuts from Saudi Arabia and Russia – Organisation of Petroleum Exporting Countries (OPEC) leaders — which are expected to announce their next line of action in the coming days.
Saudi Arabia has taken the lead in efforts to maintain global oil prices, making large voluntary output cuts.
In April, Saudi Arabia and some members of the OPEC and its allies, called OPEC+, announced voluntary cuts amounting to 1.66 million bpd.
At the oil cartel’s meeting in June, the Saudi Arabi also made another voluntary cut of one million bpd from July.
Additionally, in July, the country extended its voluntary oil output cut of one million bpd until August.
Saudi Arabia is expected to extend its voluntary one million bpd cut for a fourth consecutive month into October, according to a Reuters report.
Meanwhile, Alexander Novak, Russian deputy prime minister, had said Moscow had agreed with OPEC+ allies on the terms for continued export cuts in October.
The rise in the price of Brent crude, Nigeria’s oil benchmark, is projected to push up the international spot price of petrol, which is a primary predictor of the commodity’s price in Nigeria in the post-subsidy regime.