Nigeria 2019 Budget In Trouble As Oil Price Crashes To $49

LAGOS DECEMBER 28TH (NESRANGERS)-More indications that the implementation of the 2019 financial estimates presented to the National Assembly by President Muhammadu Buhari, a couple of weeks ago, may be difficult emerged yesterday as oil price slumped to $49.9 before it recovered to $51 later in the day.
The slide was the lowest since July 2017 as the market turmoil and worries over United States supply countered the plan by the Organisation of Petroleum Exporting Countries (OPEC) and other producers to extend or deepen production cuts.
Buhari’s estimates are predicated on an average price of $60 but that has not happened since the budget was presented, heightening fears that the budget might be dead on arrival.
OPEC and its allies, including Russia, agreed to cut output early this month, to boost oil price.
But the price, which had climbed to $86 in October, slumped below $50 yesterday as investors are sceptical the output cuts will be sufficient to dent growing supplies, especially from US shale. Futures fell as much as 1.1 percent yesterday on the first day of trading after Monday’s 6.2 per cent drop.

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