By now, a lot of people have read of the savage massacres going on in Nigeria as tribal fighting returns to a gruesome calibre.
Dennis Gartman reminds us that Nigeria is the 3rd to 5th largest exporter of crude oil to the United States, depending on the month. In December of 2009, Nigeria beat the Saudis in total US exports of oil, coming in at 3rd behind Mexico and Canada.
So when there’s basically an all-out war going down in Nigeria, one must pay close attention to the price of oil with special regard to the United States. Says Gartman:Tribal rivalries trump all other concerns when push comes to religious shove. It is now. The only good news is that the oil rich southeast is reasonably quiet, but with the north in turmoil it is reasonable to expect the southeastern separatists to ramp up their activities, exploiting the confusion that reigns in Abuja at the moment.
Today, oil is down 1.1% to $80.92 a barrel, but that could change overnight if this tribal fighting continues to escalate and makes its way to the oil-rich regions of the country.