BREAKING!!! Trouble for Nigeria as Crude Oil Prices Plunge to $10 per Barrel in International Market

Paying Social Media Jobs
Social sharing

US oil prices dived to 22-year lows at just $11 Monday after crashing almost 40 percent in a market flooded with crude and slammed by evaporating demand in the face of the coronavirus pandemic.

Just before 1200 GMT, the US benchmark West Texas Intermediate (WTI) crude for May delivery tanked to $11.04 — the lowest level since 1998.

Trade, however, was also technically driven as investors closed out their positions ahead of the May contract expiry Monday. The June contract was down 11.9 percent at $22.06.

“The real problem of the global supply-demand imbalance has started to really manifest itself in prices,” said Rystad Energy analyst Bjornar Tonhaugen.

“As production continues relatively unscathed, storage is filling up by the day. The world is using less and less oil and producers now feel how this translates in prices.”

The European benchmark contract, London Brent North Sea oil for June delivery, was down 6.1 percent at $26.38 per barrel.

Signs that the coronavirus may have peaked in Europe and the United States failed to lift Asian and European financial markets generally.

Traders are instead becoming more and more concerned that oil storage facilities are reaching their limits, as stockpiles continue to build owing to the crash in demand caused by the COVID-19 pandemic.

Analysts said this month’s agreement between OPEC and its peers to slash output by 10 million barrels a day was having little impact because of the virus lockdowns and travel restrictions that are keeping billions of people at home.

READ ALSO  Tension As Kidnappers Abduct Catholic Priest In Enugu, Kill & Dump His Body In The Bush (Photo)

WTI was hit particularly hard as its main US storage facilities in Cushing, Oklahoma, were filling up, with Trifecta Consultants analyst Sukrit Vijayakar saying refineries were not processing crude fast enough.

There are also plenty of supplies from the Middle East with no buyers as “freight costs are high”, he told AFP.

AxiCorp’s Stephen Innes added: “It’s a dump at all cost as no one… wants delivery of oil, with Cushing storage facilities filling by the minute.

“It hasn’t taken long for the market to recognise that the OPEC+ deal will not, in its present form, be enough to balance oil markets.”

Stock markets were mostly lower despite governments starting to consider how and when to ease the lockdowns that have crippled the global economy.

Italy, Spain, France and Britain reported drops in daily death tolls and slowing infection rates, while Germany began allowing some shops to reopen and Norway restarted nurseries.

‘No time to get cocky’

In the US, Andrew Cuomo, governor of badly hit New York state, said the disease was “on the descent”, though he cautioned it was “no time to get cocky”.

Mounting evidence suggests that the lockdowns and social distancing are slowing the spread of the virus.

That has intensified planning in many countries to begin loosening curbs on movement and easing the crushing pressure on national economies.

Investors are keeping an eye on Washington, where Congress and the White House are working towards a $450 billion economic relief plan for small business to add to the trillions already pledged to support the economy.

READ ALSO  BREAKING!!! Magu Finally Released From Detention

Big-name companies including IBM, Netflix and Coca-Cola are also due to deliver their earnings reports.

– Key figures around 1200 GMT –

West Texas Intermediate: DOWN 38 percent at $11.04 per barrel

Brent North Sea crude: DOWN 6.1 percent at $26.38 per barrel

London – FTSE 100: DOWN 0.8 percent at 5,740.37 points

Frankfurt – DAX 30: DOWN 1.4 percent at 10,479.39

Paris – CAC 40: DOWN 1.3 percent at 4,439.88

Milan – FTSE MIB: DOWN 1.4 percent at 16,824.83

Madrid – IBEX 35: DOWN 2.1 percent at 6,733.70

EURO STOXX 50: DOWN 1.4 percent at 2,848.16

Tokyo – Nikkei 225: DOWN 1.2 percent at 19,669.12 (close)

Hong Kong – Hang Seng: DOWN 0.2 percent at 24,330.02 (close)

Shanghai – Composite: UP 0.5 percent at 2,852.55 (close)

New York – Dow: UP 3.0 percent at 24,242.49 (Friday close)

Euro/dollar: UP at $1.0876 from $1.0875 at 2100 GMT Friday

Dollar/yen: UP at 107.72 yen from 107.54

Pound/dollar: DOWN at $1.2454 from $1.2499

Euro/pound: UP at 87.31 pence from 87.01 pence.

About Wisdom Nwedene 8662 Articles
Wisdom Nwedene is a seasoned investigative reporter and a Senior Correspondent at 9NEWS NIGERIA. He is currently an editor @9News Nigeria and also a social media strategist, writer, freelancer. Wisdom Nwedene has also interviewed many top Nigerian celebrities and Politicians. Contact me via : 07034977317 .To always get our news update on WhatsApp, call or text 'add me' to, 07034977317 or send me message via Facebook : Wisdom Nwedene(https://www.facebook.com/wisdom.nwedene) Share your story with us: +234703497 7317 ( Call & SMS only) Email: Nwedenewisdom@gmail.com

Be the first to comment

Leave your comment

Paying Social Media Jobs
Paying Social Media Jobs
Paying Social Media Jobs