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Business How Nigeria Will Benefit from USA's Attack on Iraq


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Speculators are predicting an increase in the price of crude oil in the event of a USA airstrike on Northern Iraq.

Jameel Ahmad, chief market analyst for FXTM, said the prices of oil and gold should be closely watched for volatility in the wake of the US’s new airstrikes on Iraq.

He said: “The price of oil jumped yesterday on confirmation that US President Barack Obama has authorised air strikes against Islamic militants in northern Iraq. Light Crude Oil rose 0.79 points to a daily high of 98.45. As it is widely recognised that the northern area of Iraq holds the country’s highest oil reserve – reportedly up to 70% – I expect that oil prices will continue to rise if the conflict is prolonged and a return to the $108 area for Brent (WTI) might be on its way.”

Nigeria’s budget benchmark for 2014 is $77.50 a day, and a further surge in price will allow the country to build its excess crude account after depleting it for years.

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Source: #TheCable