With preparations underway for the inauguration of a new government of General Muhammadu Buhari, the winner of the March 28 presidential election, come May 29, economic watchers have said last week’s further slide in prices of crude oil at the international market may have necessitated a return to the drawing board by the General’s economic team.
Although the All Progressive Congress (APC) flag-bearer at the poll has promised to focus on the development of the non-oil sector of the economy as an alternative revenue source, economic analysts believe the continued drop in oil price coupled with the prospective P5+1 nuclear deal with Iran that could see economic sanctions lifted on the Middle-east country soon and its re-entry into the global oil supply market – a development that will lead to oil glut and further plunge in crude oil prices – could be a setback to the populist programmes which the President-elect promised the electorates.
Also, tremendous build-up in US crude stocks is said to have dealt a blow to hopes that oil prices might rise this year.
Oil prices rose in early trading last Thursday, clawing back a part of the six per cent slump in the previous session after a shock jump in US crude inventories and record Saudi output, although analysts said sentiment remained bearish. READ MORE HERE