Tag
CRUDE OIL
Nigeria's foreign reserve dipped 5.3% year to date, to stand at its lowest level since October 2017.
Investors are weighing on reports showing the UAE paused a deal at the last minute, without an agreement on monthly crude oil production.
The group is expected to decide on Thursday to further ease the cuts as of August 1.
Despite the existence of four refineries, a working Dangote Refinery may be Nigeria’s most impactful diversification.
The exchange rate at the parallel market depreciated by 0.4% to close at N502/$1 compared to N500/$1 recorded the previous day.
With the spike in COVID-19 cases around the world, the overall bias remains strong as fuel demand has rebounded in Europe, America and China.
Until Nigeria can diversify its economy to depend less on oil revenue, we would still be observing supercycles and oil developments for forex respite.
The local currency was down at the official window as forex liquidity dropped by 43.2%.
Oil started the Asian trading session today bullish on the back of continuously shrinking U.S. crude oil and fuel supplies which indicates a strong fuel demand outlook.
Naira depreciated on Wednesday against the US dollar to close at N411.50 to a dollar compared to N410/$1 recorded on Tuesday.
Nigeria spent a sum of N1.02 trillion on servicing domestic and foreign debts in the first quarter of 2021
The exchange rate depreciated further at the parallel market to close at N500/$1 on Monday, June 21, 2021.