President Bola Tinubu’s drive for rapid economic transformation amid dwindling revenues faces another challenge on Monday as crude oil price fell.
Brent crude futures fell 39 cents, or 0.5 per cent, to $80.19 a barrel by 0728 GMT, while U.S. West Texas Intermediate crude futures were at $75.10 a barrel, down 44 cents, or 0.6 per cent.
The Organization of the Petroleum Exporting Countries (OPEC) was expected to hold meeting later in the week to agree on how to curb supplies into next year. But the meeting has been postponed to 30 November. The prices tumbled in the middle of last week after OPEC+ postponed its ministerial meeting to iron out differences in production targets for African producers.
OPEC and its allies had, in October last year, agreedto cut oil output by 2 million barrels per day in November, the biggest cut post-COVID era.
The decision came despite pressure from the United States and others advocating increase in output.
In April, OPEC said it would start “a voluntary reduction” of 1.66 million barrels per day in its production of crude oil alongside other members of OPEC.
The cuts were to start in May and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by the Saudi state-run news agency, SPA.
Credit: OPEC/Premium Times
