Lagos Nigeria- FRI, DECEMBER 28 2018-theG&BJournal- Oil prices climbed back up by about 3% to recover some lost grounds today amidst uncertainties and over supply worries but remained close to their lowest levels in more than a year.
Brent crude oil was up $1.20, or 2.3 percent, at $53.36 a barrel, having earlier risen more than 3 percent. It had dropped 4.2 percent on Thursday.
U.S. light crude was up $1.20, or 2.7 percent, at $45.81, after rising 3.6 percent in early trade.
The declining global oil price will likely distort FG’s economic projections for 2019 as well as impact adversely on its MTEF if the trend is not reversed, according to latest report by the Lagos Chamber of Industry (LCCI).
Data from the Organisation of Petroleum Exporting Countries (OPEC) shows that oil prices are trending down at $54 p/bl on 22nd December 2018 from its peak of $88p/bl in the month of September and October 2018.
‘’This is already below 2019-2021 Medium-Term Expenditure Framework (MTEF) and 2019 budget benchmark of $60p/bl,’’ LCCI noted
Oil prices fell to their lowest in almost 18 months this week and are down more than 20 percent for the year, depressed by ample supplies that have filled fuel tanks worldwide.
According to a Marketwatch report, overall, the crude market has been heading lower because investors are worried that efforts to remove a recent oil glut are falling short, amid economic sanctions imposed by the U.S. against Iran, one of the world’s largest oil producers and a member of the Organization of the Petroleum Exporting Countries.
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