Global crude oil price declines to $70 per barrel — lowest since October 2024

Global oil prices, on Tuesday, tanked to about $70 per barrel for the first time since October 2024.

Brent crude declined by 1.2 percent to $70.76 a barrel while US West Texas Intermediate (WTI) crude declined by 0.86 percent to $67.77 at 06:04 am.

The oil price decline comes after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to increase oil output in April.

According to Reuters on Monday, the decision, which is the first since 2022 from OPEC+, comes amid renewed pressure from the United States President Donald Trump on OPEC and Saudi Arabia to lower oil prices.

However, OPEC+ emphasised that the adjustment remains subject to 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 the increase would start with a monthly rise of 138,000 barrel per day (bpd).

The publication said OPEC+ has been cutting output by 5.85 million bpd, equal to about 5.7 percent of global supply, in a series of steps since 2022 to support the market.

At the close of business on Monday, Brent crude oil price declined marginally to $71.42 per barrel, from $72.81.

An oil price reduction may have dire consequences for countries like Nigeria, which recently met the oil cartel’s production quota of 1.5 million bpd for the first time since it was set in 2023.

The country’s N54.99 trillion 2025 budget, signed into law by President Bola Tinubu, is predicated on an oil benchmark price of $75 per barrel for the current fiscal year.

Analysts believe that a drop in global prices could hamper Nigeria’s capacity to execute its budget as oil revenues may shrink.