Global oil prices fell sharply on Tuesday, sliding to their lowest levels in nearly four years amid persistent oversupply concerns.
Brent crude, the international benchmark, dropped 2.71 per cent, or $1.64, to settle at $58.92 per barrel—its lowest level since early 2021. US West Texas Intermediate (WTI) crude also declined 2.73 per cent, shedding $1.55 to close at $55.27 per barrel, the weakest since February 2021 during the COVID-19 pandemic.
The downturn came despite short-term support from the United States’ seizure of a Venezuelan oil tanker last week and a spike in Chinese purchases of Venezuelan crude ahead of tighter sanctions. Analysts said these factors were outweighed by a growing volume of oil held in floating storage, which continues to cap prices.
Oil markets have faced sustained pressure this year as OPEC+ members accelerated production increases after years of output cuts. Investors are also pricing in reduced geopolitical risk, following efforts by US President Donald Trump to push Ukraine towards a possible peace agreement with Russia.
The price slump coincides with Nigeria’s fiscal planning, as the Senate recently approved a $60 per barrel oil benchmark for the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, underscoring concerns about revenue projections amid volatile global markets.
