June 22 (Lagos) - Prices of Brent Crude Oil rose above $ 45 a barrel today even as a supply glut persists in the market. Crude oil prices are key to Nigerian economy's recovery from recession. The stock market in Lagos is already down sharply for two sessions in a row now.
Brent Oil prices have plunged 20% since February leading to many analysts to fear another bear market cycle for the commodity.
OPEC's importance has also diminished because of the emergence of USA as a major crude oil supplier and has dramatically increased its crude oil production. Some industry exports in the USA claim that there are some shale oil producers who can produce crude oil profitably even if prices fall below $40 a barrel.
On the positive side, India and China continue to grow their economies at fast page leading to higher demand for Nigeria's crude oil particularly India which has reduced its dependence on Iranian oil and increased trade with Nigeria.
The stock market in Lagos is sharply lower for the second day in a row today. The reality of falling crude oil prices is beginning to hit market sentiment and everyone is hoping for Brent Oil prices to move near the $ 50 a barrel mark later this year.
reporting for easykobo.com on Thursday, June 22 2017 from Lagos, Nigeria
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