Falling Crude Oil Prices Greet Buhari’s Return
As Nigerians rejoiced yesterday on safe arrival of President Muhammadu Buhari after his 49 days medical vacation in London, so has the economy greeted the president with reports of falling crude oil prices.
Latest report has it that oil prices have fallen again. It dipped to about three-month low.
It says West Texas Intermediate currently trades below $50.
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Whereas the Brent crude, the global benchmark for oil hovers around $52 per barrel. This is the lowest price levels since December 2016.
This ordeal that has hit Nigeria is said to have been caused by increased oil productions by US shale producers, which led to oversupply in the market.
US shale producers are reported to have produced nearly 500,000 barrels per day, driving oversupply, and sinking the prices.
This is not a good omen as it translates to less revenue for Nigeria, and impending hunger for the citizens.
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The Whistler recalls, however, a recent frost advisory by The Economist to the Buhari Administration, where the President was advised to cede economy affairs to Acting President Osinbajo.
The advisory by the popular British magazine further suggested that the president’s style of governance is rather dictatorial.
