Oil Price Falls to $65 — Lowest Level Since 2021 Amid Tariffs, OPEC Output Hike

Brent crude, the global oil benchmark, dropped by 7 percent on Friday to $65.58 per barrel — its lowest level since April 2021. Similarly, the US West Texas Intermediate (WTI) fell by 7.35 percent to $62.03 per barrel.

According to Reuters, the sharp decline was triggered by escalating trade tensions after China imposed new tariffs on US goods in retaliation to sweeping import tariffs announced by President Donald Trump, including a 14 percent levy on Nigerian imports.

Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WTO), warned that the US tariff policy could significantly impact global trade and economic growth.

The price slump also comes on the heels of a production increase by the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+). On April 4, the alliance agreed to boost output by 411,000 barrels per day starting in May, following a collective decision by eight member countries to phase out previous production cuts.

The current price level is far below Nigeria’s 2025 budget benchmark of $75 per barrel.