OPEC Batters Nigeria to Gabon Bonds as Crude Oil Drops
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The plunge in oil prices exacerbated by last week’s OPEC meeting is punishing the bonds of African crude producers as the nations’ finances come under threat.
The dollar bonds of Nigeria and Gabon, which derive about 70 percent of government revenue from oil exports, were the worst performers in emerging markets after Ukraine last week as the Organization of Petroleum Exporting Countries kept its output ceiling unchanged. The difference in yield between Angola’s August 2019 securities and equivalent U.S. Treasuries reached 4.92 percentage points on Dec. 1, the most since July 2013.