Oil Prices Rebound On Lock-down Relaxations, Banks Overwhelmed

By Uche Mbah

Indications are that Oil futures are rallying on the restarting of various economies due to the relaxation of the lockdown due to the ravaging COVID 19 Pandemic, although analysts also attributed this to the slashing of prices by Oil-producing countries and the resolution of the impasse between Russia and Saudi Arabia.

Brent extended its rally for six straight days. Fuel consumption was down 30% as at last week, but is said to be easing due to ease off of travel restrictions. Airlines are gradually reviving their business, though most airlines demand COVID 19 screening before being allowed to board. Face mask-wearing is also compulsory as many countries in Africa, Europe and Asia relax restrictions.

The stock market is also rallying, with world markets averaging runs on health and technology sector.

International benchmark Brent crude rose $3.77, or 13.9%, to settle at $30.97 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained $4.17, or 20.5%, to close at $24.56 a barrel, Reuters report, adding that Italy, Spain, Nigeria, and India, as well as some U.S. states including Ohio, began allowing some people to go back to work and opened up construction sites, parks and libraries. Health experts, however, have warned that such moves could cause coronavirus infections to rise again.

Since the easing of lockdown in the main Nigerian cities of Lagos and Abuja, there has been a spike in the COVID 19 reports, with the North, particularly Kano experiencing deaths in their tens. Reports of Northern Governors attempting to export Almajiris, the destitute that litter the North, to the South is rife. Recently, Kaduna state governor, Nasir El Rufai blocked the Kano Kaduna border, saying that over 90% of the Almajiris exported to Kaduna from kano tested positive to coronavirus.

In Nigeria, Social distancing is zilch as Lagos and Abuja practice phased easing of lockdown. Crowds besiege banks, comprising those that do not use their ATM cards. The situation was made worse by banks opening only few branches. The Federal Government has threatened to resort back to lockdown if the crisis continues.