Nigeria’s revenue from crude oil sale may drop further in the first and second quarters of 2022 going by the latest projection of surplus oil supply in the period under review by the Organisation of Petroleum Exporting Countries.
Industry analysts, as well as international organisations had explained that the surplus supply of crude oil globally had often led to a drop in the commodity’s price. Crude oil sale accounts for bulk of Nigeria’s foreign exchange earnings, but the commodity has seen repeated plunge in price lately, a development currently being heightened by the emergence of the Omicron variant of the COVID-19 virus.
Global oil data obtained from Statistica on Thursday indicated that the average price of a barrel of Brent, the crude against which Nigeria’s oil is priced, moved up from $57.77/barrel in January 2021 to $83.54 in October.
But the price of the commodity has been falling since then, witnessing further plunged after the latest discovery of the Omicron variant of COVID-19, as it dropped to $69.33 at 5.46pm on Thursday. Reacting to the latest COVID-19 variant and how it would affect global oil supply, the Secretary-General, OPEC, Mohammad Barkindo.
