Amid demand fears fuelled by rising interest rates and a stronger dollar, oil prices fell to $87.81 a barrel at 12.37 GMT+1 on Friday.
Gatekeepers News reports that Brent crude, the global oil benchmark, fell by 3.10 percent for the first time since January 2022 on Friday.
Meanwhile, the US West Texas Intermediate also fell over 3 percent to $80.64 a barrel.
This comes after the MSCI All Country World Index (ACWI), the global equity index, hit a two-year low on Friday while the dollar index reached its highest level in two decades, putting downward pressure on oil.
Similarly, the pound fell to a 37-year low against the dollar as Britain’s new Finance Minister, Kwasi Kwarteng announced historic tax cuts and huge increases in borrowing.
On Wednesday, the US Federal Reserve raised interest rates by 75 basis points, propelling central banks around the world to follow suit with their hikes, raising the risk of economic recession.
Meanwhile, experts had cautioned that a recession would adversely affect oil demand.
On the other hand, Russia launched referendums on Friday aimed at annexing, adding by appropriation, four occupied regions of Ukraine.
Moscow had commenced massive troop mobilisation for its war in Ukraine.
Commenting on the development, Oil Analyst, PVM Oil Associates, Tamas Varga told Reuters: “Recession fears, further rate hikes, and the consequent dollar strength trumps geopolitical tension”.
“The upside in oil will be limited while the dollar is strong, albeit the weekend’s staged referendum in the eastern part of Ukraine could further increase tension between Russia and the West, especially if Ukrainian allies provide additional help for Ukraine to reclaim these territories.”
In Nigeria, oil theft has posed a serious threat to optimal production.
In 2022, the country witnessed unprecedented levels of the threat even as production fell bell below the one million barrels-of-oil mark.
The National Assembly recently called for a decisive move toward curtailing crude oil theft in the country.