The global oil price benchmark, Brent crude, has plummeted to $19 per barrel as demand collapsed occasioned by slow economic activity due to the Coronavirus pandemic.
The Nigerian Government had slashed the oil price benchmark for the 2020 budget to $30 per barrel from $57 per barrel due to market upsets from COVID-19 impact.
Making a sharp decline on Tuesday, the Brent, against which Nigeria’s crude oil is priced, fell by $6.34 to $19.23 per barrel as of 11:01am Nigerian time on Tuesday, while US WTI stood at minus $8.00 per barrel.
On Monday, the price of US oil had turned negative for the first time in history.
The price of a barrel of West Texas Intermediate, the benchmark for US oil, fell as low as minus $37.63 a barrel.
The severe drop on Monday was driven in part by a technicality of the global oil market.