By Uche Mbah
Perhaps the greatest indication that things are returning back to normal, albeit gradually, is the reaction of the oil sector to the Pandemic. The world is gradually beginning to open for business and the Brent Crude has risen again to about $34 per barrel-four dollars more than the revised budget benchmark which was tagged at $30 per barrel. The Pandemic had forced the downward review from $57 per barrel.
In Lagos, Governor Babajide Sanwolu is poised to review the compliance to the phased lockdown release. It is likely that more relaxations will be advocated.
According to industry watchers, for three weeks now, there has been a gradual increase in the use of automobiles all around the world, thereby upping the sale of Premium Motor spirits, generally known as petrol. There is also an increase in the sales of Aviation fuels, or Jet A1. Many airlines, while counting losses and pruning down staff strength, are revving up their aircraft. Brent has gained 30% in May alone, and there are indications that this will rise in June. It was $60 per barrel at the beginning of 2020 before crashing to less than $12 per barrel.
Indications are also that sales of crude by the Nigerian government is picking up, and the replacement of the late Chief of staff, Abba Kyari, with an international diplomat, Ibrahim Gambari, is boosting investor confidence in a market that has lost trillions in the advent of the pandemic. Experts, however, warn that this is a fragile recovery, which may collapse with any resurgence of COVID 19.
Nigerians, however, have given several knocks on government handling of the pandemic
China, being the first to suffer the Pandemic and the first to overcome it, is poised to lead the recovery of other nations, though recent reports of a resurgence of the disease in China may mar that projection. In the US. The major task of President Trump is the handling of the millions that lost their jobs due to COVID 19, which is an uphill task in an election year.
