Crude Oil Price Drops to $38: Nigeria Plans to Boost Agriculture

riceBeyond surprise, the price of crude oil has dropped to 38.3% for the first time since 2010. The $38 USD price tag is a result of the decreasing demand in the crude oil market.

The Economist explains that there are many factors affecting the demand of crude oil in the market. These include the weather changes that influence the storage and loading of tankers, weakness in economy of the oil-producing countries due to political unrest, switching away from oil to other sources of fuel for energy and the efficiency of new automobiles to manage the burning of fuel. Another major reason is that America now produces a large quantity of oil which discourages imports.

Many countries such as Russia, Brazil, Ecuador, Venezuela Iran and Nigeria are struggling in this economy of low oil demand.

Nigeria is now making a bold step to boost the agricultural sector in order to encourage the exportation of goods which will promote the strength of foreign exchange. The government is encouraging the production of Cocoa and other cereal crops that are needed in other parts of the world, such as rice. Fertilizer and equipment will also be distributed to local farmers that are increasing their production towards sustainable food security.