The Federal Government may roll-out Covid-19 vaccines as revenue boost on oil price rises.
A Fitch Solutions Country Risk & Industry Research’s latest oil price report on Monday stated that the brent oil price is expected to average $53 in 2021.
The report also indicated that 2021 global fuel demand to grow by 4.6 million barrels per day after falling by 7.1 million barrels per day in 2020 as the economy continues to recover with transport and commerce returning closer to historic pre-pandemic levels globally.
This report has given the country hope after a revenue of N1.52 trillion oil in 2020.
However, the Federal government in the 2021 budget had mapped out oil price at $40 per barrel towards funding its expenditure.
According to Fitch Solutions analysts; “our view remains that the market will continue to rebalance in 2021, driving a continued the drawdown of global inventories and further gains in prices.
“In light of the muted recovery in demand, large-scale supply-side adjustments will be needed in order to rebalance the market and work off swollen global crude inventories.
“Sharp CAPEX reductions are driving declines in non-OPEC supply, led by significant losses in the US shale patch. However, we expect shale production will return to growth in 2022, albeit at a reduced rate”.