A further decline in local energy prices was indicated by the fact that oil prices dropped for the third day in a row, plunging almost 3% to their lowest point in three years.
This comes as Brent crude, the international benchmark, fell as low as $68.33 on Wednesday, the lowest since December 2021, according to the Financial Times.
Similarly, West Texas Intermediate, the US crude blend, declined more than 4 percent to $65.22.
The moves came after the US Energy Information Administration reported a larger-than-expected rise in American crude oil stocks at the back of President Donald Trump’s ‘drill baby’ policy.
The crude price fall in the last three days comes amid the prospected slowdown in economic activity after Trump confirms the implementation of 25 percent import tariffs on Canada, Mexico, and China.
Crude inventories rose by 3.6 million barrels in the past week, far exceeding analyst estimates.
The EIA data was the latest in a series of negative indicators for demand.
“The key worry for markets at the moment is Trump’s tariffs, the retaliation from affected countries, and what will happen next,” said Callum Macpherson, head of commodities at Investec. He added that the price was “at risk of a deeper correction.”.
Wednesday’s drop added to losses since Monday when OPEC+, championed by Saudi Arabia, surprised the market by confirming it would proceed with a previously delayed plan to pump more crude starting in April by ending long-standing production cuts. The cartel’s decision means eight members of the producer group, including Saudi Arabia and Russia, will increase production by a combined 120,000 barrels a day in April and a combined 2.2 million barrels a day over the next 18 months.
DAILY POST reports that lowering crude means curses and blessings to crude oil-producing countries like Nigeria.
Nigeria’s revenue is heavily dependent on crude sales, with a projected N19.6 trillion in revenue in the 2025 fiscal year, with a crude price benchmarked around $75 per barrel.
Meanwhile, the falling crude oil price means that local Premium Motor Spirit retail prices, which are between N860 and N990 per liter, would continue to tumble.
