Brent Crude oil dipped $0.73 on Monday to close at $63.96 representing a 1.13% decline when compared to $64.42 recorded on the previous trading day.
Although oil prices had rallied earlier in the day after the U.S House passed the stimulus package of $1.9 trillion and another COVID-19 vaccine was approved for use in the United States.
The progress in the stimulus package approved by the House on Saturday after weeks of impasses lifted the sentiment on the oil market on Monday before recording a downturn later in the day to close negative.
Meanwhile, Analysts are expecting next week’s meeting of OPEC and its allies to result in more supply returning to the market as the oil prices rally over $60 per barrel.
WTI Crude closed at $60.04 (-0.99%), OPEC Basket (-1.61%), Bonny Light (-0.58%), and Natural Gas (+0.04%).
External reserve dips to lowest in two months
Nigeria’s external reserve declined by 0.1% to stand at $35.1 billion as of February 246h 2021 compared to $35.14 billion recorded as of 25th of February.
This represents the lowest external reserve position Nigeria has recorded in two-months when it stood at $34.98 billion as of 24, December 2020.
It is also worth noting that Nigeria lost over $1.2 billion in external reserves in the month of February.
According to data obtained from the Central Bank of Nigeria (CBN), external reserves declined from $36.3 billion as of 29th of January 2021 to $35.1 billion as of 26th of February 2021.
The decline in Nigeria’s external reserve has persisted in the month of February, despite rallying oil prices in the month. This is a cause for worry, as Nigeria will hope to boost its reserve in order to meet up with its accumulated needs, hindered by the crash in oil prices earlier in 2020.