Another recession may likely hit Nigeria if oil prices continued dropping.
As at yesterday, the price of Nigeria’s premium grade, Bonny Light, drop to the lowest figure since the price of crude started dropping at the International market, trading at $19.50 as against 21.06 per barrel that was sold on Tuesday.
The prices of crude has continued to drop badly, irrespective of the 9.7 million bpd output cut introduced by the membership of Organization of the Petroleum Exporting Countries, OPEC, on Sunday this week.
Similarly, other International grades, Brent and WTI dipped further, trading at $27.43 and $19.46as against $29.92 and $21.09 recorded at the close of the market on Monday.
Oil watchers are concerned that the output cut won’t be enough to head off oversupply with the Coronavirus pandemic hammering demand.
Meanwhile, the downward trend of crude oil price may lead to recession in the country, as the International Monetary Fund, IMF, has projected a contraction in the global economy by -3 percent this year.
Continued oil prices drop will mostly effects Nigeria economy, because the country is an oil dependent country which rely on the money generated from the sales of the oil.
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