CRUDE OIL near $120/barrel   

June 8 (Lagos) - Crude oil prices are hovering just below the $120/barrel mark in London at the time of writing this article. As US President heads to the Saudi Arabia to request the kingdom to increase production, consumers back home are feeling the effects of inflation on everyday items like chicken, fruit, milk and meat. 

Many analysts believe the high crude oil price is artificial and a result of sanctions against Russia, Iran and Venezuela who are now allowed to sell their crude oil in international markets. 

Demand is increasing from China where the strict lockdown in Shanghai is being relaxed. 

Another major factor in increase of crude oil prices is the decline in US crude oil production. USA had become the world's top crude oil producer just over 2 years ago under the administration of the ex-President Trump. Where we stand now is a stunning reversal from that era of stable crude oil prices and a return to pre-2014 period when we had similar volatility in crude oil prices. 

Nigeria is failing to take full advantage of the high crude oil prices because of our own production problems and lack of investment over the past 5-7 years. Major oil corporations have pulled out of Nigeria during the last 5 years or have divested their assets. It takes time to invest in crude oil production and actually increase output. While the economy needs the administration to capitalize on this high crude oil price, politicians are currently debating over who should fight the next elections in 2023 because suddenly we have so many of them who think they can be President. 
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