• Wednesday, May 29, 2024
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BusinessDay

Oil drops below $30 for the first time since 2016

oil-price-fall

For the first time since 2016, the price of Brent crude the benchmark of Nigeria’s crude oil drops more than 10 percent to $29.13 as Central Bank of Nigeria (CBN) announces reduction of interest rate from nine percent to five percent starting March 1 2020, in reaction to the effect of the deadly coronavirus.

Brent crude fell 10.9percent, or $3.71, to trade at $29.13 per barrel, its lowest level since at least Feb. 2016.

In a press conference in Abuja, the CBN announced the: extension of moratorium on leans, interest rate reduction, creation of N50bn fund, credit support for healthcare sector, regulatory forbearance and a strengthening of the Loan to Deposit Rate (LDR) policy.

While the coronavirus continues to impact global stock markets, the oil industry is seemingly out against itself. It’s abundantly clear that the pandemic is impacting oil demand, yet instead of cooperating, the biggest oil nations on the planet are facing off in a price war.

More details later……………….

 

DIPO OLADEHINDE