The majority of Nigerian oil buyers are in Europe and with imminent lockdowns, could face a potential scenario where oil revenue would decline.
The plunge in all prices is coming on worries of a swathe of COVID-19 lockdowns across emerged markets with softening fuel demand.
The U.S oil-based contract, the major indicator used for U.S. crude prices, sold at 35.79 per barrel.
International oil prices fell on Friday and posted a second consecutive monthly drop.
Crude oil prices dropped more than 5% and falling below the key $40 per barrel support, at the American trading session mid-week
The market is feeling pressure amid rising COVID-19 cases in the United States and Europe, and also due to Libyan oil production.
Growing concern that oil supply could fall by 3% continues as a result of increasing cases of COVID-19 in the US and Europe.
Both oil contracts suffered heavy losses as reports from U.S oil rig count gained up to 211 from last week’s level of 205.
Nigeria nears steel independence as $1.5 billion steel plant in Kaduna is set to produce 1 million MT of steel annually.
Gold remained under pressure at the pre-opening of London’s trading session on Monday.