The US benchmark crude oil price collapsed on Monday, falling to one cent a barrel amid an epic supply glut caused largely by the coronavirus pandemic’s hit to demand.
After beating the record low multiple times, West Texas Intermediate (WTI) for May delivery continued to sink to the unheard of oil price of a penny a barrel, before inching up to $0.27 at about 1815 GMT in New York.
Sellers of the May contract have just one more day to find buyers, but with storage in short supply, they are struggling to find takers.
The WTI contract for June delivery is trading at a still-low $22 a barrel.
Coronavirus disease is taking a toll on the sales of crude as it has dropped drastically due to companies shut down.
The impact earlier this month is fast telling back home as the sales of Nigeria’s crude oil in the international market has fallen from its projection of $57 per barrel for 2020.
Nigeria’s Minister of State for Petroleum, Timipre Sylvia has expressed strong concern about the situation which has left the country’s projection for 2020 with a shortfall that may be too massive to recover in very “short notice”.
As Coronavirus bites harder, Nigeria’s oil fortunes drop drastically from a projected $57 per barrel to $55 with devastating implications on the country’s ability to sufficiently fund the budget for 2020, the Minister has said.
Nigeria had hoped that China will provide it with the single largest sales when it pegged its projection for 2020 at $57 per barrel of crude.
That projection hit the rock bottom as the global oil price dropped in the wake of the outbreak of Coronavirus disease and with the epicenter in China.
Nigeria’s Minister of State for Petroleum said the country was extremely worried about the dip which could fall as low as $48 as more companies shut down businesses in the wake of the disease.
The Minister stated this when he joined the Senate Joint Committee on Petroleum on inspection of vandalized petroleum assets in parts of Lagos.
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