• As OPEC mulls emergency meeting in FebruaryThe outbreak of coronavirus in China, yesterday, pushed oil prices downward to almost $57 per barrel, a situation that may worsen the implementation of Nigeria’s 2020 budget. Earlier this month, price had risen above $70/barrel, following the face-off between United States and Iran after U.S. air strike had killed a top Iranian military commander. Algerian Energy Minister, Mohamed Arkab, hinted through the Algerie Presse Service, that the cartel could move its meeting scheduled to hold early March to February, as oil price continue to decline. “It is very likely to advance to February the OPEC meeting, initially scheduled for the beginning of March, so that we can find the means to ensure market balance,” Arkab was quoted in Algerie Presse Service saying. While Nigeria had signed a N10.33 trillion budget for 2020, predicated on oil price at $57/barrel, prevailing realities at the international oil market could worsen the nation’s fiscal outlook, even as some economists feared that the reality could cause another slip into recession and shortage of foreign exchange, with foreign reserves currently about $40.95 billion.

Source: The Guardian January 31, 2020 04:18 UTC