Oil prices suffered an historic collapse overnight after Saudi Arabia shocked the market by launching a price war against onetime ally Russia.
Oil prices fell as much as 30 per cent but later Brent trimmed losses slightly to be down 25.2 per cent at $33.90 a barrel, while the sell-off for West Texas Intermediate sharpened to a fall of 27.3 per cent to $30.00 a barrel.
Brent Crude Oil, which Nigeria’s 2020 budget is benchmarked against, fell from $45 per barrel to $33.49.
This is a very dire situation for Nigeria. With crude oil prices crashing and financial markets nose-diving, demand for Nigeria’s oil will wane while future deals will close at a price much lower than Nigeria’s crude oil benchmark.
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