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Oil Price Crash Deepens, Falls Below $27.50 Per Barrel

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Nigeria’s income from oil and gas in 2020 is projected to fall by 50% to 85% as a result the continued crash in the price of crude oil.

Oil Price Crash Deepens, Falls Below $27.50 Per Barrel
Oil Price Crash Deepens, Falls Below $27.50 Per Barrel

Oil briefly traded below its lowest price since 2003 as the coronavirus pandemic threatens to bring the global economy to a standstill, weakening demand just as supply explodes.

Brent oil crashed in New York fell as much as 2.8% in the Asian morning, touching as low as $26.20 a barrel. Prices gained back some of their initial losses but remain more than 15% weaker this week in the most volatile trading in history.

Oil price reached a record low at $26.20 area after breaking below $27.50 key support area. As per the current price action, there is still a hope that Bulls may gain momentum as it remains above $25. Currently, the Oil market is uncertain because of the price war between Russia and Saudi Arabia.

Oil price tried to push higher in the Asian session today because of inventories in the U.S. fall, but the price still remains below $27.50 area.

The American Petroleum Institute (API) reported on Tuesday that they are going to reduce of 421,000 barrels of crude oil in U.S. inventories. Last week API reported an increase of 6.407 million barrels and the U.S. Energy Information Administration also reported to crease of 7.7 million barrels, but this week production demand fell.

Adelowo Adegboyega
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