Sep 18 (Lagos) - Brent oil prices are near $94.75 mark in London and WTI crude oil prices were hovering near the $91.33 a barrel in New York at the time of writing this article. The jump in crude oil prices is coming as a result of production cuts by Saudi Arabia and Russia.
At the same time, traders are betting on increased crude oil demand from China which reported better than expected industrial output for August.
For Nigeria, this is good for foreign reserves as long as the country can increase its production levels to where they were ten years ago. The production levels have collapsed in the past ten years and some analysts suspect that about 40% of the country's production is being lost to organized theft. Unless this is checked, the country will fail to benefit from rising crude oil price. On the other hand, consumers will not be happy with this crude oil price increase because the pump price of petrol is likely to increase due to subsidy removal.
reporting for easykobo.com on Monday, Sep 18 2023 from Lagos, Nigeria