Data from the Central Bank of Nigeria’s (CBN’s) website showed that Nigeria’s external reserves, whose upswing seems to have been subdued by the volatility in crude oil prices, have weakened by $439 million to $48.418 billion as at May 28th.
The report revealed that the amount represented a decline by 0.9 per cent compared to the $48.857 billion it was at the beginning of the month.
Brent crude oil for July closed at $104.62 per barrel while the United States crude stood at $95.75 per barrel last Tuesday. Global oil prices had declined by six per cent from 107.23 per barrel at the end of the first quarter.
Similarly, Nigeria’s bonny light crude currently stood at $104.5 per barrel on Monday, 9.4 per cent lower than $115.3 per barrel in first quarter of the year. Also Nigeria’s oil output declined to 1.94 million barrels per day in April.
The Financial Derivatives Company Limited (FDC), a Lagos-based research and investment firm, stated in its latest monthly economic report that the domestic oil output had been negatively affected by several disruptions such as pipeline vandalism, bunkering and force majeure.