Reports in the international media confirm Brent crude fell to $27.67 a barrel early on Monday, its lowest since 2003, before recovering to $28.56 by 0208 GMT. Asian markets are already open due to time difference.
The sharp drop in price is seen as a reaction to the lifting if sanctions on Iran who are set to pump another 500,000 barrels a day in oil. Reports suggest Iran’s strategy will involve giving out discounts to who intending buyers.
The price of Brent Crude is now $10 lower than Nigeria’s budget benchmark price of $38. It is expected that the benchmark price will be reduced before the budget is approved by the National Assembly.
