Oil prices drop as global uncertainties persist

The global uncertainty in the oil market has persisted as the prices of crude oil have once again dropped below $68 per barrel amidst demand and supply uncertainties. The development continues to put pressure on Nigeria’s fiscal targets. Reports say the markets are bracing for President Donald Trump’s US tariffs to take effect, with ratings […]

The global uncertainty in the oil market has persisted as the prices of crude oil have once again dropped below $68 per barrel amidst demand and supply uncertainties.

The development continues to put pressure on Nigeria’s fiscal targets.

Reports say the markets are bracing for President Donald Trump’s US tariffs to take effect, with ratings agencies estimating that the global economy will underperform expectations.

Also, persistent geopolitical tensions continued to weigh on sentiment while the OPEC+ group planned to supply; despite a weak demand outlook in China. The international benchmark Brent crude fell around 0.5% to $67.99 per barrel, down from $68.35 at the previous session’s close.

The US benchmark West Texas Intermediate (WTI) crude decreased by 0.6% to $65.26 per barrel, compared to $65.65 in the prior session.

Oil prices fell ahead of US tariffs set to take effect on August 1, amid mounting concerns over the economic fallout of the move.

Analysts warn that the Trump administration may adopt even more aggressive trade measures, heightening market risk perceptions.

Meanwhile, geopolitical tensions continue to weigh on sentiment. Trump defended American strikes last month on three of Iran’s nuclear facilities, warning Tehran that Washington would strike again “if necessary.”

Daily Trust reports that escalating geopolitical risks are preventing a deeper slide in oil prices, as fears of potential supply disruptions persist.

In parallel, the UK announced 137 new sanctions targeting Russia’s energy sector.

The Foreign Office said the measures aim to curtail Russia’s oil revenues and further paralyze its so-called “shadow fleet.”

The new package directly targets 135 oil tankers involved in the illicit transport of $24 billion worth of cargo since early 2024, a statement said.

In Nigeria, analysts fear global disruptions to the oil market could worsen the country’s projections.

Five months to the end of the year, the $75 per barrel projection for the 2025 budget are becoming increasingly impossible to attain even as the 2.2m barrel per day (bpd) target is yet to be met.

The National Bureau of Statistics (NBS) in its gross domestic product (GDP) report for the first quarter of 2025 put Nigeria’s oil production at 1.6m, a shortfall of 600,000 bpd to meet the target.