TUE OCT 15 2024-theGBJournal| Brent crude fell 3% to $75.11 per barrel on Tuesday, more than $2 below Nigeria’s 2024 budget assumptions on weaker global demand outlook, and losing almost $4 since Monday.
The U.S West Texas Intermediate futures also tumbled by 3.1% or $2.26 to $71.57 per barrel.
Brent has until now averaged well over the US$77.96 per barrel assumed in Nigeria’s 2024 budget.
Analysts however, expect geopolitical tensions to continue to support oil price for a while at but projects it could drop to as low as $70 per barrel amid the current weakening demand forecast.
The Organization of the Petroleum Exporting Countries (OPEC) on Monday revised downwards its forecast for global oil demand growth in 2024/2025 with China accounting for the bulk of the downgrade.
In the same vein, OPEC lowered its global oil demand growth projection for 2025 to 1.64 million bpd from 1.74 million bpd.
Meanwhile, Nigeria’s production dropped from 1,438 mbp/d in August 2024 to 1,405 mb/pd September, close to July level of 1,401, according to OPEC secondary sources, adding to concerns on Nigeria’s 2024 budget assumptions.
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