Here's why oil prices dropped by almost 30% globally

The decrease is the lowest since 1991, according to a report by Reuters.

Although the plan was intended to keep oil prices steady despite the hit to demand as the coronavirus slows travel, manufacturing, and global supply chains, Russia declined to participate, with talks ending with no new deal to restrain production.

This, hence, triggered the biggest one-day falls in prices in years.

By this, prices are generally expected to go down significantly at the pumps, to ease pressure on consumers.

Brent Crude suffered its biggest one-day loss since 2008, falling more than 9% to about $45.27 a barrel. West Texas Intermediate prices tumbled 10.1% to $41.28, the biggest one-day fall since 2014 and the lowest level since 2016.

Oil exporters group Opec was pushing for an additional 1.5 million barrels per day (bpd) of cuts, which would have reduced production by about 3.6% of the world's total supply.

Non-Opec states - such as Russia- had been expected to contribute 500,000 bpd to the overall extra cut, Opec ministers said.

Meanwhile, the Chamber of Petroleum Consumers (COPEC) has demanded Oil Marketing Companies (OMCs) in Ghana to reduce their prices at the pump to reflect the continuous decline in global crude oil prices.

A statement released by COPEC stated that the global fall in crude oil prices shows that OMCs could reduce their prices at the pump by about 10%-32% compared to the 2% reduction over the past few weeks.

“It is our expectation in the coming few days that the various Oil Marketing Companies and the BDCs will ensure the Ghanaian is given nothing but the full benefit of these sustained reductions in fuel prices on the international markets.”

COPEC has further argued that the cedi’s relative stability against its major trading currencies should warrant a drop in prices.

“Coupled with the steady decline in international oil prices, also is the nominal appreciation of the local currency, the cedi, which has recorded an appreciation of over 5% from earlier depreciation figures of over 5.85/$ to currently trade at below 5.40/$ according to latest BOG figures.”