TheCable reports that oil prices are beginning to pick up following OPEC’s agreement to cut production.
The new prices represent the largest annual leap in seven whole years.
In 2016, Brent crude price rose by more than 50%.
That percentage is the biggest annual gain since surviving the global economic crisis of 2009.
Brent traded as low as $27.10 per barrel in January 2016, only to close the year above $56 per barrel.
As of 11 am on Tuesday, January 3, Brent crude was trading at $58.10 per barrel.
The United States crude identifier, Texas Intermediate (or US oil), sold at $55.04.
Both grades of crude had gained over one dollar and 20 cents on a barrel, from the previous day closing.
Both price shifting showed positive gains following OPEC’s policy which took off from January 1, 2017.
In December, 13-state OPEC had reached a deal to cut output at 32.5 million barrels per day.
The cartel got the cooperation of non-OPEC states like Russia, Bahrain, Equatorial Guinea and eight others in the first oil deal since 2001.
The current spike in prices is reported to be as a result of an output cut of 130,000 barrels by Kuwait.
Kuwait is an OPEC member state that trimmed its output to about 2.75 million a day.
The Nigerian currency depends heavily on oil exports and prices.
The naira opened the year at 490 to the dollar — its 2016 closing price — and 590, 402 to the pound sterling and euro.