Oil prices fall to an 18-year low as global demand dips
ENERGY: Global oil prices have plunged to an 18-year low at below $23 (Sh2,416.3) a barrel, signalling good tidings for local motorists and manufacturers in the months to come.
It comes on the back of raging economic lockdown across the world which has led to contraction in demand and triggered a glut of the commodity in the market.
As demand evaporates, net consumer nations like Kenya are expected to reap maximum benefit from dwindling prices.
Already, Kenyans are enjoying a relief at the pump station after fuel prices dropped mid last month by Sh2.8 for petrol.
Energy and Petroleum Regulatory Authority (Epra) attributed the reduction to the fall in global average price of crude oil in February when “the crude oil price was still high”.
“The changes in this month’s prices are as a consequence of the average landed cost of imported super petrol decreasing by 3.44 per cent from $489.44 (Sh51,418.02) per cubic metre in January 2020 to $472.59 per cubic metre in February 2020,” the regulator said in a statement.
“Diesel decreased by 5.27 per cent while kerosene decreased by 14.96 per cent” said Epra.
On Monday, Brent crude, the international marker, decreased to $22.58 (Sh2,372.14) a barrel at one point, its lowest level since November 2002.