Reports in the international media confirm Brent crude fell to $27.67 a barrel early on Monday, its lowest since 2003, before recovering to $28.56 by 0208 GMT. Asian markets are already open due to time difference.
The sharp drop in price is seen as a reaction to the lifting if sanctions on Iran who are set to pump another 500,000 barrels a day in oil. Reports suggest Iran’s strategy will involve giving out discounts to who intending buyers.
The price of Brent Crude is now $10 lower than Nigeria’s budget benchmark price of $38. It is expected that the benchmark price will be reduced before the budget is approved by the National Assembly.
The post above and its ensuing comments, if any, is purely the opinion of the writer(s). It therefore should never be considered as an investment advise of any sort. If required, readers should please consult a competent professional financial adviser for any investment decision.