As Wall Street suffered its worst weekly drop ever, the oil industry was further affected as a barrel of oil went as low as $78 in the weekend, a development that has sent panic waves all across investors in Nigeria.
Even though crude prices have almost been slashed in half already since swelling to a record $150 barrel over the summer, energy experts believe that prices could go even lower. Oil has not been this cheap in 13 months and this development has thrown Nigeria and other members of the Organisation of Petroleum Exporting Countries (OPEC) into uncertainty as their major source of revenue continues to drop.
Oil has now lost 47 percent of its value since reaching a record $147.27 in the summer as an extended credit crisis sparked by the sub-prime mortgage collapse inflicts devastation around the globe and drives down energy demand.
OPEC however has declared that it would hold a special meeting on November 18, 2008 to discuss how the world financial crisis is wrecking havoc on oil prices.
Nigerian oil gurus who operate foreign accounts are worried over the global financial future and how it may further affect the prices of oil.
Global Investors have shrugged off an array of market-stabilising efforts by world governments, including a $700 billion financial rescue plan by the United States, several bank bailouts and a coordinated interest rate cut by the Federal Reserve and central banks around the globe.