As the whole nations continue to battle the spread of coronavirus, Oil price crashed below $20 amid surprise glut in Monday.
Brent crude fell $22.58 per barrel at one point on Monday, it’s lowest level since November 2002.
The price of oil has sunk to levels not seen since 2002 as demand for crude collapses amid the coronavirus pandemic, analysts said.
The price of U.S. West Texas Intermediate (WTI) fell below $20 a barrel, close to an 18-year low.
Since the outbreak of the coronavirus, oil prices have fallen by more than half as companies cut back or close production.
The crash in demand amid supply glut was made worse when a price war broke out earlier this month between OPEC and its allies. Saudi Arabia failed to convince Russia to back production cuts that had been agreed with the other members of the OPEC oil producers’ group.
The decision came as refineries around the world are processing less crude oil and demand for transport has been hammered by grounded airlines. Similarly, fewer cars are on the roads as countries bring in tougher measures to fight the coronavirus outbreak with lockdown of major cities.
Despite significant adjustments in budgetary projections, analysts are worried that Nigeria may slip into depression amid fear of global recession.
In the midst of the uncertainty, oil prices continue to drop as the impact of the coronavirus epidemic bites harder across the world. Nigeria faces the challenge of seeking buyers for its unsold crude.
Last week, reports said Nigeria cut its official selling price of crude oil to record lows as the country looks to clear a glut of unsold April-loading cargoes before announcing its May programme.
Oil prices failed to keep pace, with growing (coronavirus) lock-down measures and reports that this could drive global demand down 20%, potentially pushing the world to run out of storage capacity,” said Morgan Stanley analyst Devin McDermott, citing a forecast by the Paris-based International Energy Agency.