Update 2: Oil prices slump for second day after OPEC agrees cut extension

The Organisation of Petroleum Exporting Countries (OPEC) together with Russia and other non-members, agreed to extend oil production cuts by an extra nine months, after rising shale production undermined last year’s deal, failing to eliminate the global supply glut.

The decision, reached yesterday in Vienna, was expected to prove bullish for crude oil prices, but it isn’t the case.

Brent crude, Nigeria’s benchmark grade, fell for the second day to $51.09 per barrel today, falling 5.3 percent from $53.96 on May 24 prior OPEC’s meeting.

Source: Bloomberg

Oil traders contacted by BusinessDay were not immediately available to comment.

Nigeria is in its second year of an economic recession and relies on oil fortunes for a rebound. Oil is expected to contribute N1.9 trillion to government revenues this year on the premise of a $44.5 per barrel  price and production of 2.2 million barrels daily.