Revenue projections in Nigeria’s 2019 budget proposal is already falling apart as Brent Crude oil price continuous to drop. Brent crude was trading at US$50.79 per barrel this morning, almost US$10 below the US$60 per barrel on which the 2019 budget was based on. This means that Nigeria’s 2019 oil revenue projection of N6.67 trillion, of which more than 50 percent was expected to come from oil revenues is now in jeopardy.
The continuing collapse in oil prices signals that investors are worried about a 2019 recession, Helima Croft, global head of commodity strategy at RBC Capital Markets to CNBC.
Oil prices have now plunged by about 40 percent from their 52-week highs at the start of October. Last week alone, U.S. West Texas Intermediate crude tumbled 11 percent, posting its worst weekly performance in nearly three years, according to a report by CNBC.
On Monday, WTI fell below $45 a barrel for the first time since July 2017. This Wednesday morning, it is trading at US$43.09 while Brent Crude is trading at US$50.79 as at 10.26 a.m. when BusinessDay checked live crude oil prices.
“I think what we’re seeing in oil is a big, big concern for 2019 about a recession. I think that is really weighing heavily on this market,” Croft told CNBC’s “Closing Bell” on Friday.
