Worrying Signals for Nigerian Economy as Oil Prices Continue Free Fall

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SWITZERLAND, MARCH 16 – As the coronavirus hits hard at the global economy and OPEC+ entered a new price war, the Nigerian economy is increasingly vulnerable as oil prices continue to plunge, several dollars lower than the $57 which the benchmark for the 2020 budget. This f

Brent fell by 10% on Monday, and U.S. crude to below $30, as emergency rate cuts by the U.S. Federal Reserve and its global counterparts failed to tame markets and China’s factory output plunged at the sharpest pace in 30 years amid the spread of coronavirus.

Brent crude LCOc1 was down $3.58, or 10.6%, to $30.27 a barrel by 1231 GMT. The front-month price had risen $1 earlier in the session.

U.S. West Texas Intermediate (WTI) crude CLc1 was at $29.24, down $2.49 or 7.8%.

An OPEC and non-OPEC technical meeting planned for Wednesday in Vienna has been called off as attempts to mediate between Saudi Arabia and Russia after the collapse of their supply cut pact made no progress, sources said on Monday.

Kremlin spokesman Dmitry Peskov also said a decline in oil prices did not come as a surprise, and that Moscow did not have any immediate plans for any contacts with the leadership of Saudi Arabia.

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