26 November 2018 : Brent crude slumped to a 2018 low of $58.80/bbl on Friday amid a sell-off triggered by concerns over excess supply and a weakening global economy. We recall that in October, the Federal Executive Council (FEC) approved a $60/bbl Brent crude benchmark for the 2019 Budget, up from $51/bbl in the 2018 Budget. The Organization for Petroleum Exporting Countries (OPEC) is due to meet before the end of the year to discuss a supply cut to support declining prices, whilst U.S. President Donald Trump has hailed the low price of oil and asked for crude prices to fall “even lower”. Meanwhile, we note that Nigeria’s oil production (2.0 mb/d) remains below the budget benchmark of 2.3 mb/d. All of this could threaten Nigeria’s 2019 oil earnings, which are vital for federal government spending and central bank reserves.
Reporting for EasyKobo on Monday , 26 November 2018 in Lagos, Nigeria
Source: Vetiva Capital Management Limited
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