Tariff Tensions Spark Oil Price Plunge: Down 6.8% to $69.90

The global oil market experienced a significant downturn yesterday, with Nigeria’s Bonny Light crude oil price dropping to $69.90 per barrel, a 6.8% decrease from its previous price of over $75 per barrel.

This development was triggered by US President Donald Trump’s announcement of sweeping new tariffs, coupled with the Organization of Oil Producing Countries’ (OPEC+) decision to increase oil production in May 2025. The increased supply is expected to further impact oil prices.

Nigeria’s 2025 budget, which is heavily reliant on oil sales, may also be affected by this decline. The budget was based on oil production of 2.06 million barrels per day, $75 per barrel, and a revenue target of N36.35 trillion, with 56% coming from oil sales.

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), crude oil output, including condensate, decreased by 3.8% to 1.671 million barrels per day in February 2025, down from 1.737 million barrels per day in January 2025.

OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, have reaffirmed their commitment to market stability and adjusted production upward. The organization stated that the eight participating countries will implement a production adjustment of 411,000 barrels per day in May 2025, equivalent to three monthly increments.

This flexibility will enable the group to continue supporting oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for participating countries to accelerate their compensation.