The prices of crude oil plummeted on Monday morning during the London trading session, as oil traders fixed their attention on an OPEC technical meeting billed to hold on Wednesday. The OPEC meeting is expected to suggest a relief in the control of oil production that has assisted the rally of crude oil prices in recent months.
Brent Crude forfeited about 0.62% to trade at $42.94 per barrel, at 6.05 am Nigerian time. The American benchmark for crude, WTI, also lost about 0.72% to trade at $40.26.
In the previous week, Crude oil prices remained relatively stable amidst the comeback and rising cases of COVID-19 in the world's largest oil-consuming economy, and the decision to enforce travel ban in some global economy. These factors could most likely set off a downturn in the demand for oil.
Nonetheless, crude oil prices rallied above 2% on Friday following a bullish forecast by the International Energy Agency (IEA) in its 2020 oil demand by 400,000 barrels per day.
At present, Brent crude is the foremost global benchmark for Atlantic basin crude oil. The international benchmark is used to set the price of about two-thirds of the world's traded crude oil including Nigeria's crude.