Oil Price Falls Below $90 Per Barrel for First Time Since August 31

Global crude oil prices extended their decline on Tuesday, November 10, with Brent crude futures falling below $90 per barrel for the first time since August 31.

Brent, the international benchmark, dropped to approximately $89.65 per barrel, representing a decline of about 3.15 per cent during trading. US West Texas Intermediate (WTI) crude also fell, trading at approximately $84.52 per barrel.

The latest decline followed a sharp fall in the previous trading session, when Brent settled at $92.57, down 5.85 per cent.

Market analysts attributed the latest movement largely to easing concerns about further military escalation in the Middle East, particularly following comments by United States President Donald Trump suggesting that additional military strikes against Iran were unlikely.

Trump’s remarks have raised expectations that diplomatic efforts could help bring the conflict to an end, potentially reducing the risk of prolonged disruptions to crude oil supplies from the region.

The market has also been influenced by expectations of increased global supply and weaker demand.

According to market assessments cited by industry analysts, the global oil market moved into an estimated surplus of 1.4 million barrels per day in October, compared with approximately 1.1 million barrels per day in September.

Production increases from major Middle Eastern oil producers have also contributed to the changing supply outlook. A Reuters survey indicated that OPEC crude production rose by 1.38 million barrels per day in October, driven largely by increased output from Saudi Arabia, Kuwait and Iraq.

Brent crude has now retreated by more than 20 per cent from its October 30 high of approximately $118 per barrel, reflecting a significant reversal from the earlier price surge triggered by fears of supply disruptions.

However, uncertainty remains over the outlook because shipping disruptions and security concerns around the Strait of Hormuz have not been completely resolved.

For Nigeria, the decline in international crude prices could affect government oil revenue and foreign exchange earnings. It may also create pressure for adjustments in domestic petroleum product prices, although local pump prices depend on exchange rates, refining and import costs, distribution expenses and other market conditions.

The continued movement of crude prices will therefore remain important to Nigeria’s fiscal outlook and the wider global energy market.