Nigeria, like other oil-producing countries, is suffering from the double whammy of the coronavirus-related economic slowdown and the oil price crash and a rally may not be here soon for three reasons.
China’s changing oil strategy
In recent months, the world biggest importer, China has changed its oil policy by importing more crude oil from the United States while reducing purchase from Organisation of Petroleum Exporting Countries (OPEC), a development that would lead to more oil glut and lower oil price.
Saudi Arabia’s oil exports to China in July declined by 23.4 percent to 1.26 million barrels per day (bpd), making Saudi Arabia China’s third-largest oil supplier while Chinese imports of U.S. crude oil soared by 139 percent year over year, to around 864,200 bpd, placing America at the fifth place among Chinese supp...for further reading, click on https://businessday.ng/energy/oilandgas/article/three-reasons-why-nigeria-should-not-expect-an-oil-rally-soon/
Source: BusinessDay Newspaper Sept 1, 2020.