Crude oil prices have dropped as the naira continues to hold firm against the dollar in the foreign exchange market.
Oil prices fell by about two per cent to a 12-week low this week following reports that OPEC+ will move forward with its planned oil output increase in April.
Brent crude dropped by $1.19, or 1.6 per cent, closing at $71.62 a barrel, while the United States West Texas Intermediate (WTI) crude fell by $1.39, or two per cent, settling at $68.37 a barrel. These are the lowest prices recorded for Brent since December 6 and WTI since December 9, 2024.
It was reported that the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, have decided to stick to their plan to increase oil output in April.
Meanwhile, the naira appreciated to N1,512 per dollar in the parallel market on Wednesday, compared to N1,515 per dollar on Tuesday.
In the Nigerian Foreign Exchange Market (NFEM), however, the naira depreciated slightly, moving from N1,502 per dollar on Tuesday to N1,505 per dollar on Wednesday, reflecting a N3 drop.
Data from the Central Bank of Nigeria (CBN) showed that the difference between the parallel market rate and the NFEM rate reduced to N7 per dollar, down from N13 per dollar the previous day.
The current trends highlight the ongoing shifts in both global oil prices and Nigeria’s foreign exchange market, with the naira showing some resilience despite the fluctuations.
