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GLOBAL OIL PRICES
Based on the terms of the Rapid Financing Instrument, Nigeria is expected to pay back the loan between within 3¼ to 5 years.
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.
There is a strong indication that the Federal Government of Nigeria may still find it difficult to implement the adjusted 2020 budget that was recently sent to the National Assembly for vetting.
Oil prices slumped more than 50 cent a barrel on Monday, even after major producers agreed their biggest-ever output cut.
Due to the crash in global oil prices, state governments have not received any federal allocation for the month of March 2020.
Crude oil surged 21% on Thursday, putting it on track for its best day on record, taking back more than half of the losses from Wednesday’s plunge.
In light of the decline in global oil prices, Nigeria is yet to find buyers for 50 cargoes of crude oil.
Global oil prices declined significantly late yesterday as news reports filtered into the market of an impending price war between Saudi Arabia and Russia.
The Organisation of Petroleum Exporting Countries (OPEC), on Tuesday, recommended an additional 1 million barrels per day crude output cut.
Global oil prices have been on the increase ever since the killing of the top Iranian army Commander, Qasem Soleimani in Bagdad last Thursday.
Global oil prices on Friday hit $69.16 per barrel, as the US killed top Iranian general to brew fears of conflict in the oil-rich Middle East.
OPEC met yesterday to decide on how to cut crude supply in order to forestall further declines in price.