Dear Subscriber,

WTI the US benchmark crude fell to a negative price level for the first time in history reaching as low as -$46pb.  The effect of this rare occurrence is that it dragged all other crude futures and forward contracts along with it.  Nigeria is not only facing an oil price problem but also a delivery problem as both floating and land storage facilities are full.

The impact on Nigeria’s revenue, reserves and currency is now an over-laboured issue.  Whilst manufacturers grapple with shortages and logistics locally, policy makers are facing their worst nightmare.

In the slides, the FDC Think Tank attempts to situate the contango market in the context of reality.

Do enjoy the read…