Nov 12 (Lagos) - As USA recently became the top producer of crude oil in the world, prices of Brent crude oil fell below $ 70 a barrel. The crude oil markets are undergoing something that an analyst called as a 'ferocious' bear market. The West Texas Intermediate is on the longest losing streak since 34 years.
OPEC has an informal discussion over the weekend and there were talks of possible production cuts. The next official OPEC meet is on Dec 6 and this topic is likely to be discussed at that meeting.
OPEC fears the return of 2015-2016 period when crude oil prices declined by 70% causing massive rises in fiscal deficits of its biggest members like Saudi Arabia.
Nigeria is one of the smaller members of OPEC and its economy was torn apart by the fall in crude oil prices. It has not recovered till now with GDP only expected to grow at 2% which is a shame for a frontier market. The currency is devaluation is another fear on the minds of investors in Nigeria.
reporting for easykobo.com on Monday, Nov 12 2018 from Lagos, Nigeria