Crude Oil: Bonny Light Loses All 2022 Gains

Nigeria’s Bonny Light grade crude oil lost all its gains in 2022 after trading at $81.94 per barrel at the end of 2022, a drop of 8.26 percent from the $88.71 per barrel it traded in January 2022.

Bonny Light hit the highest mark in June 2022 when it traded at $130.01 per dollar following the invasion of Ukraine by Russia four months earlier. The war led to a series of sanctions by western countries on Russia, a major exporter of crude oil.

Data obtained from the Central Bank of Nigeria showed that Bonny Light traded at $99.64 in February, $121.23 in March, $106.51 in April, $116.72 in May, $130.01 in June, $120.54 in July, $106.34 in August, $93.25 in September, $96.57 in October and $93.36 in November.

But despite its mixed fortune during the year, the Organization of Petroleum Exporting Countries, OPEC, hailed the agreement it reached with other oil exporting countries which resulted in the Document of Cooperation six years ago, saying it has helped to stabilize the global oil market.

OPEC Secretary General, Haitham Al Ghais, in a statement to mark the 6th year of the agreement added that it has also helped in securing global energy security.

The DoC which was signed by 23 oil producing countries aims to secure sustainable oil market stability through cooperation and dialogue, including at the research and technical levels, for the benefit of all producers, consumers and investors, as well as the global economy at large.

According to Al Ghais, “The Declaration of Cooperation is an unprecedented collaborative framework of 23 oil-producing countries that is based on trust, mutual respect and dialogue. Six years later, the framework continues to play an instrumental role in supporting market stability, which is essential for growth and development, as well as attracting the necessary investment to ensure energy security.”