HOW THE PRICE OF OIL WILL BOOST THE NIGERIAN ECONOMY IF THE PRICE GETS TO $100 PER BARREL

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I can say Nigeria is one of the biggest oil producing country in the world,this has been the main source of income since it discovery accounting for over 70% of its income both internationally and locally.oil is not only needed by the Nigerian citizens alone,in short the world as whole need oil to keep the activities of the automobile companies functioning.

2021 was really bad year for the world as whole,due to the broke out of the covid 19 pandemic.this actually brought many economy of the world down to a very low ebb.many business collapsed and some still struggling to survive up till now.the oil industry is not also exempted from the disastrous effect of COVID-19.it was during this time that crude oil got to it all time low affecting alot of oil producing countries which Nigeria is one of them.since then the price of crude oil has been struggling in the market.recently the demand of oil has been on the increase which supply will definitely be higher.presently the price of crude Brent sits at $87.69 per barrel,while west Texas intermediate was down at 0.74 which is $84.94 per barrel which not really bad.

Oil prices has been on the rise with steady supplies as a result of production shot falls, so many petroleum exporting countries (OPEC) have delivered fewer barrels to the market than expected.so how come the OPEC is coming short of oil in the market.a look at Nigeria and other OPEC nations has helped to calm down the initial heat of omicron which everyone thought was going to be but fortunately omicron proves to be less than what was expected.geopolitacal tension is also a factor to be considered.alot of tension has been experienced in recent time in some oil exporting countries such as the drone attack on the oil facility of iraq down to Libya that also experienced geopolitical tension but fortunately for Nigeria although it has its own issues it is battling but not affecting the oil production.

Now what is the analysis of oil.price this year and how will it affect the economy of nigeria.analysis from Goldman Sachs shows that their is every inclination that oil price should get to $96 per barrel and by next year it should get to $105.so with the current price,it is expected that oil producing countries should pump more oil.now if the analysis given by Goldman Sachs is correct,it will definitely benefit Nigeria alot because it forms the bulk of Nigerian income.nigerian has been experiencing down fall in the price of oil since 2014 that it sold at over $100 after then ,the price of oil has never been the same again.the advent of COVID-19 made the oil market even worse.

So for oil to get to $100 will actually be a boom to the Nigerian economy in that there will be more money in circulation and at the same time there is every inclination that the price of things will be come cheaper as well as creating more employment opportunities.this could lead to increased in the salaries of workers as well .presently the price of oil sit at $86 per barrels so there is every inclination that oil should get to $100 very soon.

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