The price of Brent, the benchmark of Nigeria’s crude oil has fallen to $39 as bearish factors mount and sentiment shifts add another wrench in the recovery for oil prices still reeling from the pandemic-driven blow to consumption.
Brent futures dropped 4.1 percent to $38.95 a barrel as at 2 pm Nigerian Time, while US crude dropped by 1.10 percent, to $37.67.
One major factor behind the fall in oil price is the concerns over rising exports from the Organisation of Petroleum Exporting Countries (OPEC) and allies’ in third quarter of 2020, with the possibility of a total breakdown of the OPEC+ agreement.
Also, Libya has announced plan to reopen its oil ports as soon as this coming weekend. Groups affiliated with General Khalifa Haftar’s Libyan National Army blockaded the country’s oil terminals in January, suspending exports and effectively decimating production from over 1.2 million bpd to less than 100,000 bpd...for further reading, click on https://businessday.ng/energy/oilandgas/article/oil-prices-below-40-what-it-means-for-nigeria-local-oil-companies-banks/
Source: BusinessDay Newspaper Sept 15, 2020,