Hope is back in the beautiful nation. The Chief High Priest of Nigeria’s economy (yes, the GMD of NNPC), has spoken: the message from the alpha of our economy, crude oil, is normalization is around the corner.
“At this point, we have seen a gradual easing of the situation. Those numbers of the uncommitted cargoes have gone down drastically and that’s why we see a gradual rise in prices in the last three to four days. It means that those uncleared transactions are now easing off.” Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, 17th May 2020
“Today, I can share with you that there are over 12 stranded LNG cargoes in the market globally. It has never happened before. LNG cargoes that are stranded with no hope of being purchased because there is abrupt collapse in demand associated with the outbreak of coronavirus,” Mallam Kyari, 12th March 2020
“After ‘Black April’, the heaviest demand destruction may be behind us…” IEA Executive Director Fatih Birol tweeted. “We see early signs markets have begun the rebalancing process.”
Nigeria’s Bonny Light traded as low as $14.75 on 21st April, it has gained over 100% since then. At the weekend it gained over 10% to close at $29.84. The uptick in oil prices has fuelled the growth in the country’s Fx reserves.
Oh ye Nigerians, very soon, it would be party moments again with all the recent “reforms” magically unreformed. The alpha is returning back to the throne, and crude oil we all pay economic allegiance. Farmers, leave your seats; techies, vacate here; manufacturers, you are uninvited; etc. What matters now is this: oil is feeling healthier and the iroko has sounded. I can feel it – the village square is awash with the energy of politicians, briefcase contractors, and we will spend again like there is no tomorrow.