(Ecofin Agency) - The price of Nigeria’s Bonny Light crude oil increased to $53.91 per barrel in December 2016, from $42.20 the previous month, a difference of $11.71. This is the second highest amongst the Organization of Petroleum Exporting Countries’ (OPEC) reference basket, under the month in review.

During this period, the country was producing 1.9 million bpd and probably earned an additional $22 million from the sale of the crude. This increase, according to The Guardian, boosted the West African nation’s ability to finance the 2017 budget and if the improvement continues, it could reduce its dependence on external borrowings to fund other development projects.

The World Bank has said that the prices of oil will average $55 per barrel this year. Similarly, the United States Energy Information Administration (EIA) expects global crude oil balances to tighten till 2018.

An analysis of OPEC’s reference basket for December showed that Bonny Light crude is the second largest blend after Abu Dhabi’s Murban crude oil. The cartel said that the light sweet crude from West and North Africa’s Basket components; Saharan Blend, Es Sider, Girassol, Bonny Light and Gabon’s Rabi, increased by 19.1% to $53.10, the same month.

The World Bank, however, expects the market to tighten this year and crude oil prices to increase to $60 barrels in 2018, driven by a balanced market and no additional OPEC supply restraint.

Anita Fatunji