Global Oil Prices Plunge Below $70 Amid OPEC+ Output Boost
For the first time since October 2024, global oil prices dipped to nearly $70 per barrel on Tuesday, raising concerns over market stability and economic implications for oil-dependent nations.
Brent crude tumbled 1.2% to $70.76 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 0.86% to $67.77 by 6:04 a.m., marking a notable downturn in the energy market.
The price slump follows a key decision by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to increase oil production in April—the first such move since 2022. The announcement comes amid renewed pressure from U.S. President Donald Trump, who has urged OPEC and Saudi Arabia to take steps to lower oil prices.
However, OPEC+ reassured the market that its decision remains flexible and subject to economic conditions.
“This gradual increase may be paused or reversed subject to market conditions. This flexibility will allow the group to continue to support oil market stability,” the oil cartel said in a statement.
Industry projections indicate that the production hike will begin with a modest increase of 138,000 barrels per day (bpd). Since 2022, OPEC+ has implemented a series of production cuts amounting to 5.85 million bpd—roughly 5.7% of the global supply—in efforts to sustain prices.
Monday’s trading session saw Brent crude closing at $71.42 per barrel, down from its previous $72.81, signaling further potential volatility.
The price dip could pose challenges for oil-reliant economies like Nigeria, which recently met its OPEC production quota of 1.5 million bpd for the first time since 2023. With the country’s ₦54.99 trillion ($75 billion) 2025 budget based on a $75 per barrel oil benchmark, analysts warn that continued price declines could jeopardize government revenue and economic stability.
