Bonny Light surges to $27.3/bbl

*As Stakeholders predict crude prices at $10/bbl

As the raving Coranavirus code-named COVID-19 outbreak along with Saudi Arabia and Russia, price war persists, Nigeria’s Crude oil grade, Bonny Light after hitting 17 years low Friday, rise to $27.3 per barrel.

This is coming even as stakeholders warn that despite the slight increase, crude oil risks falling to $10 a barrel following the effect of the epidemic.

However, iBrandTV gathered that the current price movement of crude oil comes as countries around the world are investing trillions of dollars into fighting the spread of the coronavirus, including instituting travel and social restrictions.

A breakdown of the development shows that, Bonny Light which stood at 25.22 on Thursday, rise by $2.05 to 27.27 as at 10.00 am local time. US benchmark West Texas Intermediate (WTI) was up 3.65 per cent to $26.14 a barrel in midday Asian trade.

READ ALSO: Crude Oil War: OPEC members lost $500m a day in oil price crash

Brent climbed 2.14 per cent to $29.08 a barrel.

On Thursday, WTI rebounded by more than 23 per cent following US government moves to help American crude producers weather a slump in demand caused by the coronavirus pandemic, recovering almost as spectacularly as it had plunged in recent days.

It was also gathered that Iraq’s oil minister is requesting an emergency meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to take action to stabilize the market. 

Russia and Saudi Arabia’s battle for market shares have also put additional pressure on the market.

READ ALSO: OIL IN TROUBLE: Nigeria currently searching for oil buyers – NNPC

The virus has infected more than 203,000 people worldwide, killing more than 8,200 with more than 82,100 recoveries, according to data from Johns Hopkins University.

According to Jameel Ahmad, Global Head of Currency Strategy & Market Research at FXTM, “Multiple nations are still in the process of announcing more controls and restrictions that are clearly although put in place for very good reason, creating anxiety for investors and the average person in the street trying to adapt to this environment. 

“I feel that until it is confirmed that a combination between a clear announcement that countries have reached the limit of putting controls in place, the virus reaching a peak, or vaccination is on the way that trying to support world financial markets at this time will be like trying to water a plant with holes in the watering pot. The water will not reach the plants and the market will still decline as a result.

“One of the many casualties during Wednesday trade has been another astonishing fall in the U.S. Crude Oil price, with the commodity losing a further 10 per cent. 

“The Oil price has smashed through its previous 2016 support level around $27 and is now valued below $25 for the first time since at least 2003. Investor sentiment is in such a state of freefall that there are possibilities that crude prices can fall to $20 within hours, if not by the end of this week.”