L
LequteMan
Guest
Trouble looms ahead for Nigeria as the price of crude oil, the country's main export and means for foreign exchange, has fallen to a 11 year low.
Brent crude sank by 4.2% to $34.88 a barrel on Wednesday, surpassing its late December fall, and taking the price to its lowest level since 1 July 2004. Also, the price of US crude dropped 3.3% to $34.77 a barrel.
The sharp falls followed a short-lived rally on Monday after Saudi Arabia broke diplomatic ties with Iran.
Analysts said fears over the worsening relations between Saudi Arabia and Iran, which had initially raised concerns about possible supply disruptions and boosted the oil price, had now been overtaken by pessimism over oil cartel Opec ever agreeing on a production ceiling.
Nigeria's 2016 budget was based on a benchmark of 38$ per barrel and the country would still need to borrow N2.2tr to fund the budget.
Brent crude sank by 4.2% to $34.88 a barrel on Wednesday, surpassing its late December fall, and taking the price to its lowest level since 1 July 2004. Also, the price of US crude dropped 3.3% to $34.77 a barrel.
The sharp falls followed a short-lived rally on Monday after Saudi Arabia broke diplomatic ties with Iran.
Analysts said fears over the worsening relations between Saudi Arabia and Iran, which had initially raised concerns about possible supply disruptions and boosted the oil price, had now been overtaken by pessimism over oil cartel Opec ever agreeing on a production ceiling.
Nigeria's 2016 budget was based on a benchmark of 38$ per barrel and the country would still need to borrow N2.2tr to fund the budget.
