Coronavirus: Oil Plunges to $48 as Global Risk Surges

• Coronavirus: Oil Plunges to $48 as Global Risk Surges

Oil price plunged to $48 a barrel on Friday as the world struggles with coronavirus outbreak.

Brent crude, against which Nigerian oil is priced, declined from $57.19 per barrel it traded on Monday to $48.99 on Friday as countries like Nigeria, Lithuania, Wale, etc confirmed their first coronavirus cases.

Nigeria, Africa’s largest economy, confirmed the first case of coronavirus on Thursday as an Italian man, who arrived in the country from Milian, Italy, tested positive to the virus.

Nigeria, Italy, Iran, Japan, South Korea, Brazil, France, UK, Germany, etc have all confirmed they have infected persons. Rising global uncertainties as global stocks lost over $3 trillion in value this week, yet no solution in sight as more nations and victims are confirmed each day.

Sea-Intelligence, a Conpehangen based research firm, said the outbreak could cost the shipping sector as much as $1.7 billion while the International Air Transport Association (IATA) has said airlines operating in the Asia-Pacific region could lose over $27 billion in demand revenue.

In Nigeria, the size of the damage is yet to be ascertained as the nation struggles to contain the spread of the virus to a single case and allay investors’ fear.

Africa’s largest economy is looking to fund its N10.59 trillion in 2020. Experts have said it would be tough given the nation over-reliance on crude oil and loans.

Oil price presently trading below Nigeria’s benchmark of $57 per barrel, at $48 per barrel Nigeria would be losing $19,620,000 per day at an assumed production level of 2.18 million barrels per day.