The price of West Texas Intermediate (WTI), the benchmark for U.S. oil, dropped 39.09 per cent to $10.98 a barrel on Monday.

Lack of sufficient demand and storage place is the likely cause of the steep fall in price.

The oil market has seen its worst decline since the outbreak of the coronavirus pandemic that forced many economic activities on lockdown.

Also, the fight between the two largest oil exporters – Saudi Arabia and Russia – on output cut later resulted in a global oil price war.

Last week, OPEC and its allies including Russia, resolved to undertake a cut of about 10 million barrels per day from their members’ oil production.

According to BBC news, analysts have said the cuts were not big enough to make a difference.

“It hasn’t taken long for the market to recognise that the Opec+ deal will not, in its present form, be enough to balance oil markets,” BBC quoted Stephen Innes, a chief global market strategist at Axicorp as saying

Nigeria’s benchmark crude oil grade, Bonny Light, slumped significantly earlier last week, trading at $12 and $13 per barrel.

Also, the benchmark used by Europe, and the rest of the world, Brent oil, as at the time of this filing is down 6.55 per cent to $26.24 a barrel.

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