Group Executive Director, Finance, of the Corporation, Mr. Isiaka Abdulrazak, who said this while briefing the Senate Committee on Finance in Abuja on Tuesday noted that projections suggest that prices will go above the benchmark by April.
He said: “The winter in the Northern Hemisphere has been very aggressive this year which is good news for us because it is also helping with the oil price.
“By our projection and those of most of the analysis done by international analysts, the oil price should go back to well above $38 per barrel.
“Towards the end of the year, the most conservative projection for the end of the year is that the price will not go below $40 per barrel.
“So we are confident that the current price of $38 per barrel is attainable and sustainable from the budget.”
He added that the economic growth of India and the growth expectations of other economies also suggest that the demand for oil will also lead to increase.
He also said that the proposed 2.2 million barrels production per year was still feasible as the daily production capacity was currently above that figure.