Oil Price Drops To $24, Lowest Since 2002

The price of Brent crude, in the international benchmark, crashed to the lowest level in 17 years as global markets continued to respond to the price war between Saudi Arabia and Russia amidst the spread of the coronavirus disease.

Brent, against which Nigeria’s crude is priced, fell by $3.84 to $24.89 per barrel late last night being the lowest since 2002.

It should be noted that the oil price is now more than 50 per cent lower than Nigeria’s budget benchmark, the country’s oil-dependent economy has come under much pressure.

Travel and social restrictions aimed at curtailing the coronavirus spread were said to have raised the fall in oil demand.

These restrictions have eaten deep into the world's unquenchable thirst for oil, which strengthens the economy.

Globally, numerous flights have been cancelled, cruise industries at standstill, highways are empty, and so many factories are in the dark.

It should be noted that, the Nigeria’s economy might fall into another recession as the sudden crash in crude oil prices is set to erase billions of dollars from the expected earnings in the country in six months