Saudi Arabia has increased its oil supply as its state-owned company, Aramco, has pledged to supply a record 12.3 million barrels per day (bpd) from next month, which is a massive increase to flood the market.
Also oil prices rebounded on Tuesday as the international benchmark grade, Brent crude, trading 9.6 per cent higher at $37.64 per barrel as against $35.45 per barrel on Monday.
The continued plunge in oil prices is piling pressure on Nigeria to devalue the naira as dwindling export revenue depletes foreign-exchange reserves, curbing the Central Bank of Nigeria’s (CBN’s) ability to support the currency.
Reserves have decreased by 20 per cent in the past two years to the lowest since November 2017, and may soon reach the $30 billion threshold set by CBN Governor Godwin Emefiele for the country to consider devaluation.