There has been a rebound of oil prices to over $42 per barrel being the highest in almost 3 months after the output cut by OPEC+ and other top oil-producing countries helped to reduce the supply glut in the international market.
This is further boosted by demand recovery as a result of the gradual easing of lockdown across economies around the world.
The surge in oil prices is a source of good news for Nigeria’s economy as oil is a major source of revenue for the country, although the effect of the Coronavirus pandemic is still biting hard on consumers and business activities. If the current trend in the global oil market continues, it will provide some level of stability to the country’s already fragile economy.
Also Read: OPEC and allies agree to extend production cut till next month
Last week the Central Bank of Nigeria, CBN Governor, Godwin Emefiele predicted that the country might not get into recession as a result of the Coronavirus outbreak. The CBN said that the drop in GDP could be less than the 3.4% projected by the International Monetary Fund, IMF.
(Editor: Terverr Tyav)
