Coronavirus: Oil price loses gains, dips to $22 per barrel

Sahara Energy, 58 others to lift oil in Republic of South Sudan
Oil vessel

The price of crude oil, Monday, tumbled with Nigeria’s premium grade, Bonny Light, trading at $22.46 per barrel.

Other international grades, Brent and WTI also lost grounds trading at $28.33 and $22.46 respectively.

Again, this latest price has underperformed the latest cut in the oil price benchmark for Nigeria’s 2020 Budget.

The outbreak of Coronavirus (COVID-19) across the world had pressured down the oil price, and the federal government was forced to drop the benchmark to $30 from the initial $57.

READ ALSO: COVID-19: World oil demand to plunge more than 10%, says Vitol

Oil prices have fallen for four straight weeks and have given up about 60 per cent since the start of the year. Prices of everything from coal to copper have also been hit by the crisis, while markets in bonds and stocks enter rarely charted territory.

The market has had to contend with the twin shocks of the demand crash caused by the COVID-19 pandemic and the unexpected oil price war that erupted between leading producers, Russia and Saudi Arabia, earlier this month which undermined production cut-back expected to have helped stabilise the price. The current production cut deal expires this month.