Tag
BRENT CRUDE
Oil prices have continued its downward trend, with Brent crude falling below its average unit cost of production of c.US$23. T
Brent crude futures slumped by more than 25% on Tuesday 10.45 am Nigerian local time, closing below $20 a barrel.
Oil prices slumped more than 50 cent a barrel on Monday, even after major producers agreed their biggest-ever output cut.
The Organization of Petroleum Exporting Countries (OPEC) and its allies finally agreed to a historic crude oil output cut that is expected to help stabilize the oil market after the devastation caused by the Coronavirus pandemic.
Brent crude was up 3.05%, or $1.08, at $33.83 at 9.30 am Nigerian time, having climbed up as much as 5% the day before.
The market capitalisation of the Nigerian Stock Exchange, which represents the market value of all listed companies, lost about N2 trillion in the first quarter of 2020.
Crude oil price rose on Thursday after President Donald Trump showed faith that the damaging oil price battle between Saudi Arabia and Russia could be settled.
The drop in the price of crude oil on Wednesday has definitely increased pressure on a number of pegged currencies in energy-exporting emerging countries.
Diversification of Nigeria’s economy is believed to be the only viable way to survive the current environment of global economic uncertainty.
Oil prices fell today as political leaders around the world escalated lockdowns to curb the spread of the global coronavirus pandemic.
Oil prices slumped further on Monday to $30, the lowest in four years. Price of the Brent crude dropped by 10% to $30.49 per barrel.
With oil prices falling amid concerns over a price war between Russia and Saudi Arabia, and the coronavirus outbreak obliterating stock markets, Nigeria is in a fragile position.