Oil and gas prices: Implication for Nigeria 1 Crude oil price in the international market had a steady rise last year. Many factors were responsible for this, including the ongoing Russia/Ukraine war. MUYIWA LUCAS examines the implication for Nigeria, its revenue drive and the economy. The climate for the global oil and natural gas markets can best be described as one of extreme nervousness, uncertainty, and volatility. A plethora of factors are fuelling it, including concerns about supply, rising COVID cases in China, and low global inventory levels. Geopolitical events, which are always a factor in oil prices, are probably a well-above-average influence given the crisis in Ukraine. In this report, S&P Global Ratings responds to frequently asked questions on the topic. Driving force Before addressing this question, it’s important to understand the state of oil markets before the Ukrainian invasion. Prior to the invasion, oil prices had steadily increased owing to global economic reopenings as well as continued supply discipline from OPEC and North American producers. The latter, seemingly having found fiscal religion at the hands of investors, remained disciplined with regards to capital expenditures and focused on improving the balance sheets and distributing cash flow to shareholders. […]
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