Oil and Gas Resources in Africa- A Curse or A Blessing?

Oil and gas remains one of the highest resources whose prices are very volatile in the international market. This is caused by a number of factors including the forces of demand and supply, the speculative nature of investors, oil and financial companies, and the regulatory bodies such as OPEC. Major political events will have an impact on the volatility of oil prices too as major political incident in one part of the country that is a major supplier of oil and gas will turn to affect the entire market and its prices. The major effects of this oil price volatility is the fact that states find it difficult to better plan and manage their budget especially when such budget is highly dependent on oil revenue. The end result is that the oil production in that country will turn to be a curse instead of a blessing.