International oil price crashes to $39

The international oil benchmark, Brent crude, fell below the $40 per barrel mark on Monday, amid demand worries, as the Organisation of the Petroleum Exporting Countries further cut its outlook for demand growth.

Nigeria, Africa’s biggest oil producer, said its crude oil production rose slightly to 1.36 million barrels per day in August from 1.35 million bpd in July, according to OPEC.

OPEC, in its monthly oil market report for September, said the crude oil production by the 13-member cartel increased by 760,000 bpd to an average 24.05 million bpd in August.

Brent, against which Nigeria’s crude oil is priced, fell by $0.36 to $39.47 per barrel as of 6:05pm Nigerian time on Monday, after the report was released.

Prices have fallen by almost 15 per cent so far this month.

Oil prices had collapsed as the COVID-19 crisis had curtailed travel and economic activity.

While some countries have eased lockdowns, allowing demand to recover, a rising number of new cases and higher oil output have weighed on prices, according to Reuters.

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