Tom Kirkman

Nigeria dependence on oil revenue underlined by coronavirus

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Self-explanatory.

Nigeria dependence on oil revenue underlined by coronavirus

The fast spreading coronavirus from China is threatening Nigeria’s primary source of revenue, oil.

Demand for oil has slumped in the months since the outbreak of the epidemic.

“Nigeria is still hopelessly dependent on crude oil and so anything that impacts the price or demand for crude oil impacts us. And because we have no fiscal buffers or significant foreign reserves the impacts will be significant,” Dr Nonso Obikili, Director at Turgot Centre for Economics and Policy Research said.

Global oil prices fell by as much as 15%, falling to a three-month low since the outbreak, putting pressure on Africa’s largest oil producer’s plan to raise N2.64 trillion in revenue from oil sales from output of two million barrels a day.  ...

 

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On 2/7/2020 at 11:23 AM, Tom Kirkman said:

Self-explanatory.

Nigeria dependence on oil revenue underlined by coronavirus

The fast spreading coronavirus from China is threatening Nigeria’s primary source of revenue, oil.

Demand for oil has slumped in the months since the outbreak of the epidemic.

“Nigeria is still hopelessly dependent on crude oil and so anything that impacts the price or demand for crude oil impacts us. And because we have no fiscal buffers or significant foreign reserves the impacts will be significant,” Dr Nonso Obikili, Director at Turgot Centre for Economics and Policy Research said.

Global oil prices fell by as much as 15%, falling to a three-month low since the outbreak, putting pressure on Africa’s largest oil producer’s plan to raise N2.64 trillion in revenue from oil sales from output of two million barrels a day.  ...

 

Or the headlines could have read, The worlds oil prices jumped on the fears of Middle East conflict and have recently receded as these fears appear overblown. 
The fundamentals have been fighting to much production for years. Fact is the West is simply winning market share while OPEC/Russia back off. 
Trumps new plan is to take a bigger share of the worlds oil markets with Canadian tar sands running through US ports.

One source thinks the virus slowed demand 30-50 thousand barrels per day which is minuscule out of a 100 million per day market.

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