June 6 (Lagos) - The taps are leaking dangerously on Oil prices and this is something no plumber can fix in the short to medium term.
Oil prices collapsed yesterday, sinking to levels not seen in six months, after stockpiles on US Crude unexpectedly jumped by the most in five weeks.
The steep downside was fuelled by growing concerns over persistent US-China trade tensions negatively impacting growth and hitting demand for Crude Oil. Falling Oil remains a significant risk for Nigeria, especially when factoring in that a lion’s share of the nation’s export revenues is sourced from Oil sales.
Should Oil prices remain depressed for prolonged periods, this has the potential to obstruct Nigeria’s economic recovery and threaten stability in the exchange rate.
Source - Lukman Otunuga, FXTM analyst