Global oil prices fell to approximately $70 per barrel on Tuesday, marking the lowest level since October 2024.
Brent crude declined by 1.2% to $70.76 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 0.86% to $67.77 as of 06:04 AM.
The price drop follows the decision by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to increase oil production in April. According to Reuters, this marks OPEC+’s first production hike since 2022, amid renewed pressure from U.S. President Donald Trump on OPEC and Saudi Arabia to lower oil prices.
However, OPEC+ stated that the adjustment remains flexible and will depend on market conditions.
“This gradual increase may be paused or reversed subject to market conditions. This flexibility will allow the group to continue to support oil market stability,” the oil cartel said.
Reuters projected that production would initially rise by 138,000 barrels per day (bpd). Since 2022, OPEC+ has been implementing phased output cuts totaling 5.85 million bpd—approximately 5.7% of global supply—to stabilize prices.
By the close of trading on Monday, Brent crude had declined slightly to $71.42 per barrel from $72.81.
A prolonged drop in oil prices could have significant economic implications for oil-dependent countries like Nigeria. The country recently met OPEC’s production quota of 1.5 million bpd for the first time since it was set in 2023.
Nigeria’s ₦54.99 trillion ($75 billion) 2025 budget, signed into law by President Bola Tinubu, is based on an oil benchmark price of $75 per barrel. Analysts warn that sustained lower oil prices could weaken Nigeria’s revenue inflow, potentially affecting budget implementation.
