Price of Nigeria’s premium grade, Bonny Light, dipped yesterday to the lowest figure since the price of crude started plummeting at the International market, trading at $19.50 as against 21.06 per barrel Tuesday.

Prices of crude have continued to fall despite the 9.7 million bpd output cut initiated by members of Organization of the Petroleum Exporting Countries, OPEC, on Sunday.

Other International grades, Brent and WTI dipped further, trading at $27.43 and $19.46 as against $29.92 and $21.09 recorded at the close of the market on Monday.

Just last week, the federal government sent a revised 2020 Budget to National Assembly with downward projected oil price at $30 per barrel. The original estimate was N57.

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 three percent negative this year.

With additional report from Vanguard