The recent rise in oil prices has given Nigeria, a major oil-producing country, hope that oil could return to its former glory of more than $100 per barrel before the end of 2018. Reports suggest that is the plan for Saudi Arabia who wants more revenue for its budget, and for the valuation of the Initial Public Offering of its state-owned Aramco oil. A possible sanction on Iran could also cause a further hike in oil prices. Rising oil demands caused by OPEC’s decision to keep some barrels off the market have contributed to the rising oil price. Already, there are warnings that the rising prices could lead to a repeat of the global economic crises in 2008.
Increased production of US shale oil is one of the threats to rising oil prices. However, a new threat arrived in the shape of US President Donald Trump last week, when he tweeted that the rising oil prices, largely engineered by the Organization of the Petroleum Exporting Countries (OPEC), will not be accepted by him. His tweet helped to cap the rising oil prices last week, and prevented it from rising further. Will Oil producers also have to worry about the tweets of president Trump?
Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!
— Donald J. Trump (@realDonaldTrump) April 20, 2018
Below is the Ventures Africa Weekly Economic Index, for the week ending 20th of April 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 20th of April 2018, showed that the All Share Index depreciated by 0.28 percent from the previous week ending 13th April 2018. Market capitalization at the close of trading during the week under review was N14.743 trillion which was also a 0.28 percent decrease from N14.784 trillion recorded the previous week. The All Share Index for the week under review closed at 40,814.89
Top five price Gainers and Decliners in the week under review:
Top five price gainers
Jaiz Bank Plc.
Skye Bank Plc.
Julius Berger Nig. Plc.
Unity Bank Plc.
Top five price decliners
A.G Leventis Nigeria Plc.
Mutual Benefits Assurance Plc.
Niger Insurance Plc.
How did the Naira fare?
In the week under review, the Naira remained stable against the Dollar in the parallel market. It was sold at N360/$ on Friday 20th of April 2018, maintaining the same value it recorded on the 13th of April 2018.
How did the price of oil fare?
Global oil prices continue to rise, even as they went up from $71.90 per barrel during the week ending 13th of April to $73.32 on the week ending 29th of April 2018. However, president Trump’s tweet about rising oil prices has put a cap on the surge.