Oil prices appeared to have continued the positive momentum of Monday, as it rose again in the morning of Tuesday, but eventually ended the day at $39.84.

After a surge of $39 per barrel between Sunday and Monday, the global price of crude oil on Tuesday, was shaky and unstable.

Following a six-day gain period for the Brent crude, Goldman Sachs had inferred that the rally was unsustainable.

And this was manifested during the day’s session as Brent crude hit a 2016 high of $41.48, but it rested at $39.84 a barrel by 6.42pm Nigerian time.

Goldman Sachs’ warning that oil prices “simply are not sustainable in the current environment” was eventually justified.

The benchmark Brent prices have now hit a three-month high on hopes for a coordinated approach by major crude oil producers to support prices.

The oil prices, while it dwindled, affected Nigeria’s revenue owing to the over-reliance of the nation’s economy on crude oil.

Interest Rates

Meanwhile, the Kaduna State Governor, Nasir el-Rufai has urged the Central Bank of Nigeria to review and drastically cut its interest rate.

El-Rufai made the call on Tuesday, while speaking at the State Governors’ Panel during the Economist Conference in Lagos.

The governor said interest rates are politically determined and that the current lending rates in excess of 20 per cent is not acceptable because only traders can borrow at that rate.

“The CBN should bring down the interest rate or one day, we will have to do it for the bank; we should be looking at having a single digit interest rate.”

Naira devaluation

El-Rufai also backed President Muhammadu Buhari’s stance on the devaluation of naira, noting that such an action is not in the interest of the economy, and will only favour the rich and not the poor.

“I am against devaluation of the naira because previous devaluations did not work given that we are not an export-driven country.”