The international oil benchmark, Brent crude has crashed to $33 per barrel from $45.72 per barrel on Sunday.
The Punch Reported that this benchmark which is applicable to Nigeria’s crude, fell by $11.62 to $33.45 as of 9.00am Nigerian time on Monday.
According to Reuters, it earlier dropped to $31.02, which is it’s lowest since February 12, 2016.
This oil price crash is linked with Saudi Arabia’s price war against onetime ally Russia.
Traders are bracing for Saudi Arabia to flood the market with crude in a bid to recapture market share, according to CNN Business.
Last Friday, the negotiations between the Organisation of Petroleum Exporting Countries and its partners broke down as Russia, the leader of the 10 allies, refused to go along with a plan for deeper crude production cuts to tackle the coronavirus’ impact on global oil demand.
Brent, has been on a downward trend since the coronavirus broke out.
Prior that, OPEC on Thursday revealed a plan under which it would slash its production quotas by an additional 1 million barrels per day for the rest of the year, contingent on Russia and nine other non-OPEC allies agreeing to shrink theirs by 500,000 barrels per day.
Saudi Arabia however, escalated the situation over the weekend by slashing its April official selling prices by $6 to $8, which analysts believe is a bid to retake market share and heap pressure on Russia.