Brent Crude Oil Drops to $11.88, The Biggest Decline Since March

By Tolulope Oke

The Brent crude oil fell to $11.88 a barrel yesterday, the most since March of this year, amid fears of a global recession.

Benchmark Brent crude was down to10.4%, to $101.83 per barrel, while US West Texas Intermediate (WTI) crude was down 8.2%, or $8.93, to $99.50 per barrel.

According to Reuters, both benchmarks experienced their largest daily percentage decline since March 9 and impacted the share prices of major oil and gas companies. Prices have dropped to their lowest level since late April.

Oil prices have risen by more than 50% this year, but Nigeria has been unable to capitalize due to a lack of refining infrastructures.

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Nigeria’s last known production figure, according to primary communication, was 1.024 million bpd, with the latest quota reaching 1.826 million bpd, an indication of 45,000 barrels drop prior to the most recent production. That means Nigeria will be unable to produce up to 800,000 bpd.

Supply concerns persist, initially lifting WTI and Brent earlier in the session as a result of expected output disruption in Norway, where offshore workers have begun a strike.

Saudi Arabia, the world’s largest oil exporter, increased August crude oil prices for Asian buyers to near record levels due to tight supply and strong demand.