The West Texas Intermediate (WTI) has dropped below $22 for the first time in 18 years, as coronavirus pandemics damped demand for crude oil, while a disagreement between Saudi Arabia and Russia over output cut worsened the situation.
Oil prices have been in turmoil as the globe is dealing with the coronavirus pandemic, which has claimed the lives of 35,045 and infected 740,685, hitting the United States, Italy, Spain, China, and Germany particularly hard.
The pandemic has plugged has stoked unprecedented global macroeconomic uncertainties that is worse than the second world war and investors have continued to dump shares and pack their money in haven assets.
However, Brent Crude, which Nigeria’s oil is priced, dropped 2.20 percent to $25.75, the lowest since 1990, as the virus continues to ravage Africa countries.
The Nigerian government was forced to cut the crude oil bench mark price down to $30, while the central bank weakened the currency so as to defend the external reserve and stabilize the economy.
Nigerian President Muhammadu Buhari signed the country’s N10.6 trillion ($29 billion) spending plan into law this year based on an crude price projection of $57 a barrel and targeted oil earnings of N2.64 trillion.
