Actually the problem starts way back. I mean way back. For the sake of argument, and since it is my blog...I can pretty much say what I want. Nothing I say will bring down the (stock) market or appreciates the Naira (currency) anyway...But the problem begins when the fuel price in international market simply...drop.
The fuel price has been hanging around the region of USD100 since 2010. Higher consumption of the black gold around the globe and high demand in China, coupled with uncertainty in some oil producing countries like Iran and Libya (both are OPEC members) pushes the prices. Production can't keep up, so the price soar...a case of supply and demand.
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| note the Demand and Supply line (source: Int. Energy Agency) |
Fast forward to 2014, the demand became lax and supply overtook. Unused oil was being stockpiled for later use. Supply outstrip demand, the price went down.
