New Petrol Prices as Oil Falls, Report Says OPEC May Reject FG's Planned Production Increases
- Crude oil prices have dropped as of Monday, January 27, 2025, as Donal Trump asked OPEC to cut prices
- Brent crude, the global benchmark for oil prices, lost 53 cents to sell at $77.97 per barrel on Monday after rising by 21 cents last week
- Energy experts say the crash in crude oil cost could also lead to a reduction in petroleum product prices in Nigeria
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Oil prices dipped on Monday, January 27, 2025, after US President, Donald Trump, asked the global oil cartel, the Organisation of Petroleum Exporting Countries (OPEC), to scale down prices amid wide-ranging measures to boost US oil and gas production.
Brent Crude fell by 53 cents, or 0.68% to $77.97 per barrel after rising 21 cents on Friday, January 24, 2025.
Source: Getty Images
Trump moves to hurt Russia with sanctions
West Texas Intermediate (WTI) crude sold at $74.16 per barrel, falling 50 cents or 0,67%.
According to reports, Trump repeated his call for OPEC to scale down oil prices to hurt Russia’s economy and end the war in Ukraine.
“One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil … That war will stop right away,” Trump said.
Trump threatened to impose taxes, sanctions and tariffs on Russia and other participating countries if an agreement to end the war in Ukraine is not reached soon.
Meanwhile, OPEC and its members have not reacted to Trump’s call as OPEC+ delegates pointed out that a plan is already in place to begin raising output in April.
Experts predict new petrol prices
BusinessDay reports that WTI and Brent Crude posted their first decline in five weeks as concerns reduced about sanctions on Russia disrupting supplies.
Analysts believe falling crude oil costs could lead to reduced petroleum product prices in Nigeria.
They say that when the commodity’s price skyrocketed above $80 per barrel, oil companies in Nigeria, including the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC) raised petroleum product prices, especially PMS.
Dangote Refinery explained to Nigerians that the increase in petrol prices was in response to rising global crude costs.
“Now that price has fallen below $80 per barrel, Nigerians expect that the oil companies such as Dangote Petroleum Company Limited and the NNPC, should do the needful and revert to their oil prices,” Adeola Yusuf, Energy Policy Analyst and Team Lead, Platforms Africa, said.
He stated that the oil prices are always volatile and sensitive to international politics.
OPEC may reject Nigeria's increased oil output
A previous report by Legit.ng says that the plan by the Nigeran government to raise crude oil output to 2.062 million barrels daily could lead to a clash with the Organisation of Petroleum Exporting Countries (OPEC).
A report by Bloomberg claims that Nigeria recently came out of a prolonged production slump due to improved security conditions.
However, the boost in crude production has now placed the country in a challenging position as it faces the problem of balancing increased output with the organisation’s output restrictions.
Nigeria’s oil export threatened as Trump plans production increase
Legit.ng earlier reported that President Donald Trump has planned an executive order and a declaration of an energy emergency to boost US oil and gas production, which could negatively impact Nigeria’s demand and revenue.
The development comes as oil prices declined to $80 per barrel from $83 per barrel on Monday, January 20, 2025, as traders anticipated Donald Trump's clarification of his agenda.
The US is a bulk buyer of Nigeria’s oil, as data shows that the country led the list of top buyers in 2024.
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Source: Legit.ng
