Oil prices could rise again on the back of potential election violence in Nigeria, warn energy analysts Inenco.
Last Saturday’s first wave of voting in Africa’s leading oil producer was disrupted by bombings and political violence, and continued unrest could affect oil prices claim Inenco.
The African state is in the middle of a three-week voting process: last week they voted for the parliament, next week will decide the governors, and this weekend votes will be cast for the President.
Nick Campbell, Inenco analyst said: “Any political unrest created from the polls in Nigeria could further increase the geopolitical risk and may retrace recent losses in the price of oil.
“It is unclear if this will mean prices back at $126 a barrel or higher, as the dollar may strengthen, which could offset some of the impact. But Nigeria is one variable in a plethora which is making the oil price so volatile at the moment.
“Any political unrest in key oil producing states will add to the stronger matrix created by perceived higher demand as forecast from a number of key sources.”
Oil prices hit a 32-month high last week amid fears for security of supply following unrest in the Middle East.