Global oil prices dropped on Thursday as markets awaited the upcoming meeting of Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+.
Gatekeepers News reports that Brent crude fell by 1.11 percent to $66.85 per barrel, while the US benchmark, West Texas Intermediate (WTI), declined by 1.20 percent to $63.20 a barrel.
The decline comes just days before eight OPEC+ members; Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman meet to deliberate on voluntary production adjustments.
Reuters reported that discussions will likely focus on whether to push ahead with output increases in October, as the bloc seeks to strengthen its market share.
In earlier decisions, the cartel had agreed to extend voluntary cuts of 2.2 million barrels per day (bpd) until March 2025, with a gradual phase-out scheduled through September 2026 to stabilise the market. However, on March 3, OPEC+ opted to begin raising production from April 1.
The group subsequently approved production hikes of 411,000 bpd for May and July, 548,000 bpd in August, and 547,000 bpd in September.
With oil now trading well below the $75 per barrel benchmark projected in Nigeria’s 2025 budget, analysts caution that the country may face difficulties in achieving full budget implementation.
