Global oil prices tumbled on Friday amid the emergence of tariffs affecting world’s economies.
Crude oil price data showed that United States WTI and Brent stood at $61.37 and $64.85 per barrel as the time of filing this report on Friday.
This drop in the prices of crude blends comes amid United States President Donald Trump's tariffs and the decision of the Organisation of Oil Producing Countries, OPEC+ group, to increase its unwinding of output cuts in May 2025, expected to increase supply to the market.
DAILY POST reports Trump's tariff announcement on Wednesday has shocked economies across the globe, with stocks declining for the second consecutive day.
Earlier, OPEC said Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman have reaffirmed their commitment to market stability on a healthier oil market outlook and adjusted production upward.
In a report released on Thursday, the organisation stated, “The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, met virtually on 3 April 2025, to review global market conditions and outlook.
“In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on 5 December 2024, subsequently reaffirmed on 3 March 2025, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1st of April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025.
“This comprises the increment originally planned for May in addition to two monthly increments. The gradual increases may be paused or reversed subject to evolving market conditions.”
However, the drop in the prices of crude may likely affect Nigeria’s 2025 budget, which was based on oil production of 2.06 million bpd, oil price of $75 per barrel, and a revenue target of N36.35 trillion, with 56 percent coming from oil sales.
Recall that the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, said crude oil output, including condensate, dropped month-on-month by 3.8 percent to 1.671 million barrels per day in February 2025, from 1.737 million bpd in January 2025.
