On Tuesday, Brent Crude futures dropped below $70 per barrel, marking the first time this has occurred since December 2021.
Global prices experienced a decline, with Brent crude oil falling by $2.33 (-3.24 percent) to $69.51 per barrel, while WTI crude decreased by $2.60 (-3.78 percent) to $66.11 per barrel.
The reduction in oil prices was influenced by various factors, including geopolitical tensions in the Middle East, discouraging economic data from China and the US, and an increase in supply output by Nonmembers of the Organization of Petroleum Exporting Countries (OPEC), all contributing to concerns about a potential surplus in the oil market in the coming months.
The decline in crude oil prices has also affected the Nigerian Naira. Given that Nigeria heavily relies on crude oil sales as a major source of external reserves, fluctuations in global oil prices have a direct impact on the value of the Naira.
On Tuesday, the Naira depreciated significantly, with the exchange rate reaching N1637.59 per dollar, compared to N1580.46 on Monday.
This continuous fluctuation and decrease in the value of the Naira against the dollar may worsen the existing Naira crisis, posing challenges for the Nigerian economy.
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