Brent hits lowest level since 2021 as analysts project weaker prices and OPEC maintains production limits
Global crude oil prices dropped sharply on Tuesday, with prices falling to $58 per barrel for the first time since February 2021, amid lingering concerns over excess supply and renewed optimism around a potential peace agreement between Russia and Ukraine.
Brent crude, the global benchmark, declined by 2.86 per cent to $58.83 per barrel as of 10:30 p.m. WAT, while US West Texas Intermediate (WTI) fell by 2.88 per cent to $55.04 per barrel.
According to a report by Reuters, the latest price slump reflects sustained worries about oversupply in the global oil market, alongside expectations that sanctions on Russia could be relaxed if diplomatic efforts to end the Ukraine conflict succeed.
Analysts at Barclays said they now expect Brent crude to average $65 per barrel in 2026, noting that the forecast is “slightly ahead of the forward curve” due to an anticipated 1.9 million barrels-per-day supply surplus, which they believe has already been factored into market prices.
Meanwhile, the Organisation of Petroleum Exporting Countries (OPEC) has maintained Nigeria’s crude oil production quota at 1.5 million barrels per day through December 2026, following its meeting on November 30.
The oil producers’ group also disclosed that eight participating countries Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman have agreed to pause planned production increases in January, February, and March 2026, citing seasonal demand patterns.
In a separate update released on December 12, OPEC reported that Nigeria’s crude oil production rose to 1.43 million barrels per day in November, marking the country’s highest output in three months, though still below its allocated quota.
The drop in oil prices comes amid broader fiscal adjustments at home. Earlier, the Senate approved a reduction in Nigeria’s crude oil benchmark price for 2026 to $60 per barrel, down from the previously proposed $64.85, reflecting growing caution over global oil market conditions.
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