Oil prices rose on Wednesday to $90 a barrel for the first time since 2014 — amid rising tensions between Russia and Ukraine.

Over the past months, oil prices have continued to surge amid increasing demand for the commodity.

Brent, global oil benchmark, topped the latest milestone while U.S. West Texas Intermediate (WTI) crude futures also witnessed a corresponding increase of 1.96% to $87.27 a barrel.

The current price is $28 higher than the $62 per barrel pegged in the 2022 budget of the federal government.

Xscape1993:
What is use

Penguin2:


At least so that Buhari will stop crying about low oil price.

Corden and Neary (1982) have demonstrated how Dutch disease occurs in an economy. According to them, in a country experiencing "boom" in the export of a commodity, the economy can be divided into three sectors: the "booming" export sector, the "lagging' traditional export sector and the non-export sector. The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc. The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy. This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). [b]This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty[/b]

Cantonese:


And PDP $100 per barrel no saving wasted years. Na siddon look we dey.

Cantonese:


And PDP $100 per barrel no saving wasted years. Na siddon look we dey.

Over the past months, oil prices have continued to surge amid increasing demand for the commodity

gulfer:
This should be a cause for joy but in Buhari's Nigeria, it's a course for worry and pain to common Nigerians

Brent, global oil benchmark, topped the latest milestone while U.S. West Texas Intermediate (WTI) crude futures also witnessed a corresponding increase of 1.96% to $87.27 a barrel.
The current price is $28 higher than the $62 per barrel pegged in the 2022 budget of the federal government.

CUMIN:
Warren Buffett was right by buying more of oil stocks.
He knew it wasn't over for fossil fuels