Oil prices dropped on Wednesday after US President Donald Trump announced a deal for the United States to import up to $2 billion in Venezuelan crude, raising concerns over global supply.
Gatekeepers News reports that by 5:00pm WAT, Brent crude fell 0.38% to $60.56 per barrel, while US West Texas Intermediate (WTI) crude dropped 1.17% to $56.46 per barrel.
Earlier in the day, Trump said Venezuela would deliver between 30 million and 50 million barrels of oil to the US. The announcement came after Trump declared that the US would take over Venezuela’s affairs until a political transition is achieved, following the capture of Venezuelan President Nicolás Maduro and his removal to New York.
According to Reuters, the Venezuelan oil deal is expected to increase supplies to the United States, the world’s largest oil consumer, intensifying downward pressure on global prices.
The decline poses a challenge to Nigeria’s budget implementation, as current oil prices are below the 2026 federal budget benchmark of $64.85 per barrel.
On December 19, President Bola Tinubu presented the 2026 budget of N58.18 trillion, setting a “conservative” crude oil benchmark of $64.85 per barrel, projected oil production of 1.84 million barrels per day, and an exchange rate of ₦1,400 to the US dollar for the fiscal year.
“The 2026–2028 Medium‑Term Expenditure Framework and Fiscal Strategy Paper sets the parameters for this budget. Our projections are based on a conservative crude oil benchmark of US$64.85 per barrel; crude oil production of 1.84 million barrels per day; and an exchange rate of N1,400 to the US Dollar for the 2026 fiscal year,” President Tinubu said.
The budget carries a deficit of N23.85 trillion, representing 4.28% of Nigeria’s GDP, which could be further strained if oil prices remain below the benchmark.
