Brent Crude oil futures rebounded to above $ 86 a barrel in London and $ 81.79 at NYMEX. The USD weakened slightly against the Europe.The Naira was under pressure at 165.55 against the USD and beginning to affect investor confidence.
The European stocks are rising today with London FTSE up 0.41%, Germany DAX up 0.64%. Asian stocks followed up the rally in NYSE to close higher by 1.46% at Japan’s NEKKEI, Singapore Straits Times close higher by 0.39%, India’s BSE SENSEX rose 0.55% and China’s Shanghai Composite rose by 1.5%.
Crude oil could rebound if the demand increases in India and China but with supplies and record high analysts are forecasting lower prices in 2015.
That affects Nigeria’s economy as it is remains dependent upon the foreign exchange revenue from the Oil and Gas sector. The focus on Agriculture by the present administration could lead to reduction on that dependence on Oil and Gas but it is still long way to go.
Stocks could rally if the Brent Crude oil rebounds further as it will calm fears on devaluation and inflation locally.