Crude oil prices sinking – yet again

The prices of crude oil across the world is taking a nose dive again, falling from 2016 highs to the mid-forties on Monday.

As at 4pm Nigerian time, Brent crude – the international benchmark for oil – was trading at $44.35 per barrel, losing over a dollar from its position on Friday.

West Texas Intermediate (WTI) also fell to $44.02, creating a very slim difference between both variant.

This is happening at a time, when Abdalla Salem El-Badri, OPEC secretary general, expressed optimism that the low crude oil prices have “bottomed out”.

“We hope that the rising trend in prices we have seen of late will continue. I do not expect the price to go high, but that it will reach a moderate level,” el-Badri said.

“Let us take it one step at a time — look at the production freeze option first and then discuss other ways and means later.

“Let us see what will happen because the price did go down to a level we did not think would be achieved.”

Speaking about the volatility in crude oil prices, the OPEC secretary general said it was by no means the first time the market had experienced high and low oil price scenarios.

“I have personally seen this cycle five times. We have had periods when prices were high and then came down and periods when they fell and then went back up.

“The current cycle is perhaps a little bit different because it was caused by a high supply of highcost oil. We will overcome it and the price will return to normal.”