The continuous decline in crude oil prices might not be over soon — that’s according to the International Energy Agency and Citi Bank.
The International Energy Agency in a report on crude oil supply and stocks for the month of February noted that oil prices will continue to decline but will rebound to around 73 dollars by the year 2020.
The International Energy Agency supplies emergency oil stocks to some 29 countries.
Citi Bank also in its latest report has projected that crude oil prices could go down to about 20 dollars a barrel this year, before rebounding.
If these predictions are anything to go by, then consumers should brace themselves for some serious reduction in prices of petroleum products at the pumps in the coming months.
This is because the National Petroleum Authority (NPA) has indicated that it would be able to clear part of 4 billion dollars debt owed Bulk Oil distributors which should pay the way for continuous reduction in prices at the pumps from March this year.
However for government this news should put it in a tight corner as its earnings from crude oil exports continue to drop, prompting serious implications on some infrastructure projects.
Road projects for instance could suffer significantly.
In a related development, oil and gas service provider, Schlumberger, says it will lay off about 6,400 of its work force around world.
It is not clear whether its workers in the country would be affected by this move.
Several oil service providers such as Baker Hughes are planning to lay about 18 thousand of their workers around the world.