Nigeria’s biggest labor union of oil-and-gas workers promises to stop the production of natural gas and oil if the local authorities don’t resume the subsidizing of the industry. On Monday the labor union started a nationwide strike, because the cancelation of the subsidies had resulted in higher (+100%) gasoline prices, thus making the transportation of oil much costlier.
Such a measure is explained by the desire to save $8B and to avoid bankruptcy.
Nigeria exports 2.4M barrels of crude oil a day, thus being one of the major suppliers to the USA and Europe.
According to the FMA-Sar Department of , the market of crude oil is expected to rally. The closest targets are 104.40, 104.85 and 105.65. Alternatively, the price will stay in the current range.
