Nigerian crude fell early this week as OPEC+ signals a modest production increase for November and northern Iraq resumed exports, causing concerns about a growing oversupply despite high prices.
Global oil prices have surged to a 2-month high on growing signs of a rebound in oil demand.
Economies are opening up, however, the recovery is gradual and will take some time for oil prices to hit pre-COVID-19 levels.
The crisis in the global oil market seems to be hitting Nigeria harder since the country's economy is largely dependent on crude oil proceeds. and to make matters worse, it has become more difficult to sell the oil, even at ridiculously low rates.
Nigeria seems to be falling into a deeper revenue mess as the price of the country’s headline crude, Bonny light fell below the prices of Brent crude and US headline WTI crude.
Analysts believe that the recovery of the oil market will take time, as things will only start easing off when the solution to the Coronavirus pandemic starts to record success.
The dangerous exposure of Nigeria to the crude oil price crash and low demand globally will be a huge blow to the country’s ability to meet its revenue target for the revised budget
Driven by fears of naira being weakened at the fallout in last week's plunge in oil price, foreign portfolios investors ramped up their exit from the fixed income market.
Bonny Light Crude Oil (BLCO) is a high grade of Nigerian crude oil produced in the Niger Delta basin and named after the city of Bonny.
