Senate Sets Benchmark Price Of Crude Oil At $52
The proposed 2015 budget which has been stalled by indecision over the benchmark price of oil seems to be on its way to safe passage. Yesterday, the Senate at an executive session finally decided on a benchmark price of $52 per barrel.
Initially, the executive arm of government had proposed a benchmark price of $65 per barrel. In light of falling oil prices on the international market as well as OPEC’s refusal to mandate its member nations to cut production, the initial price of $65 was viewed as unrealistic.
Regardless of the new benchmark price, there are many who feel the benchmark price should have been set at a much lower figure to prevent shortfall in revenue as a result of unstable oil prices.
Professor Pat Utomi recently suggested that the benchmark price of oil should be no more than $40 per barrel.