Oil Price: Income crisis hardens as oil hits $28

The price of the Nigerian crude oil, Bonny Light, fell to $28.93 per barrel as of Monday, compared to $29.47 from previous week

Concerns about the return of Iran to an already oversupplied oil market drove down global benchmark, Brent crude on Monday to as low as $27.67 per barrel.

This has been its lowest since 2003, before recovering to trade at $28.50.

Based on information provided by the CBN, the price of the Nigerian crude oil, Bonny Light, fell to $28.93 per barrel as of Monday, compared to $29.47 from previous week.

READ: Currency falls further to N300 to a dollar

According to the Executive Director, South African Petroleum Industry Association, Avhapfani Tshifularo “Iranian imports are likely to displace the Nigerian and Saudi Arabian crudes, since they seem to have filled the gap when South Africa stopped importing Iranian crude oil.”

“Iran remains a major threat to Nigeria in India, and that could affect trade this year. Before now, traders have had issues selling our cargoes.”

Over the weekend, the United States had cut Iran’s oil exports by about two million barrels per day since their pre-sanctions 2011 peak to a little more than one million bpd.