Covid-19: Oil price falls below $20 a barrel

Covid-19: Oil price falls below $20 a barrel

- The deadly coronavirus is causing a lot of changes, especially negative around the world

- One of such changes is the fall in the world oil price, which is now below $20 a barrel

- The fallen oil price will affect Nigeria

The global oil price slumped below $20 on Monday, March 30.

According to CBC news outlet, this is the first time this will be happening in 18 years.

Going further, the news outlet reports that West Texas Intermediate was at one point changing hands for as low as $19.92 a barrel, down more than $1.50 on the day.

"The true price is, in fact, even lower than that, because that price includes in part the cost of lighter oil that oilsands crude is blended with in order to get it to move along a pipeline. If that part of the mix is stripped out, it's not a stretch to suggest that the bitumen itself is functionally worthless," CBC reports.

PPPRA gives new update on reduction on price of petroleum

Meanwhile, had reported that oil prices leapt to $30.17 per barrel on Thursday, March 19 bouncing back from days of heavy losses in a relief rally that may yet be short-lived due to the continued threat of coronavirus.

Brent crude rose by $2.10, or 8 per cent, at $26.98 a barrel after tumbling 13 per cent on Wednesday, March 18 in a third day of relentless selling.

With the spread of coronavirus showing no sign of abating, countries on every continent have resorted to drastic lockdowns, steps to try to tame a virus that has now infected more than 200,000 people worldwide, killing more than 8,000, with a major global recession in prospect.

Already, the global price war between Saudi Arabia and Russia put extra pressure on the oil industry, already reeling as the coronavirus pandemic hits demand.

Airlines and cruise ships are cancelling trips while consumers stay home in massive lockdown across the world.

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Nigeria is not left out as Delta state governor, Senator Ifeanyi Okowa, has asked Nigerians to brace up for the multiplier effects of coronavirus, adding that it could affect their socio-economic lives.

The governor, a trained medical doctor, made the call at a quarterly session with the media in Asaba on Thursday, March 12.

He said the virus had made the price of oil in the international market to tumble and had also caused many industries to stop production.

He warned that unless urgent steps were taken to check the effects of the viral disease, many states in the country may not be able to pay salaries of workers.

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Recently, President Muhammadu Buhari approved the reduction in the pump price of premium motor spirit from N145 per litre to about N125.

The reduction in price is due to the decline in the prices of crude oil globally.

Coronavirus: Africa has lost about $65bn in revenues - Economic commission discloses

The Buhari's government also shut down three international airports as part of its strategic measures to curb the spread of coronavirus across the country.

The airports are; Mallam Aminu Kano Airport, Kano; Akanu Ibiam Airport, Enugu; and the Port Harcourt Airport, Rivers.

The government had earlier placed restrictions on travel to worst-hit countries as the world continued to battle the global pandemic. ( -> We have upgraded to serve you better

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Source: Legit

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