The Oil market report for the fourth quarter of 2023 by the International Energy Agency indicates that the
growth of global oil demand is expected to slow down by 1.2 million barrels per day (mb/d) in 2024 compared to 2.3 mb/d in 2023. The decline in projected oil demand is due to several factors including slow GDP growth in major economies falling below trend, increased energy efficiency and electrification of vehicle fleets. Conversely, the world oil supply was projected to rise by 1.5 mb/d to a new high of 103.5 mb/d, fuelled by record- setting output from non-OPEC countries like the US, Brazil, Guyana, and Canada. OPEC supply is expected to hold steady on previous supply.
February 8, 2024
Nigeria Economic Update (Issue 4)
Related
Nigeria Economic Update (Issue 6)
The
nations foreign reserves have been on a steady rise. In the review week,
reserves increased by $415.2 million from $28.3 billion on February 3, 2017 to
$28.8 billion on February 10, 2017. The increase is likely the
reflection of a sustained crude oil revenue complemented by moderating global
crude oil price and increasing domestic production. This should help strengthen
the ability of the CBN to foster forex liquidity, and thus help maintain
stability in the domestic forex market. If sustained, it should also help
improve the value of the naira overtime. Hence, the government should implement
proactive and effective policy strategies to, not only, sustain improvements in
oil revenue but also boost non-oil revenue.