Nov 21 (Lagos) - Crude oil prices declined after China reported more Covid -19 cases and starting shutting down some parts of cities after a person died from the virus. China has imposed its zero-covid policy which means people cannot go out without doing regular Covid tests.
Brent crude oil prices near to $87 a barrel in London after falling almost 10% last week. NYMEX WTI crude oil futures were trading at $79.32/barrel at the time of writing this article.
Traders fear this could result in lower demand for fuel from the China. There could also be pressures from lower prices obtainable to major consumers of crude oil like elsewhere due to western sanctions on oil producing countries like Venezuela, Russia and Iran.
Amid the decline in crude oil prices, the production cut adopted by OPEC+ nations would begin to make sense. People in USA would welcome lower pump price of gasoline after a period of high price which has caused high inflation.
Nigeria has so far failed to fully take advantage of the high crude oil prices that have prevailed since 2021 because the output has not come back on. This could be an issue on the upcoming general elections because the country's economy is dependent upon producing and selling as much crude oil as possible.
reporting for easykobo.com on Monday, November 21 2022 from Lagos, Nigeria