Oil Prices Sink to Four-Year Lows as Supply Glut Deepens, OPEC+ Output Rises

|By Babatunji Wusu

Global oil prices slumped on Tuesday, sliding to their lowest levels in four years as rising supply and easing geopolitical tensions weighed heavily on the market.

Brent crude, the global benchmark, fell 2.71 per cent, shedding $1.64 to close at $58.92 per barrel—its weakest level since early 2021. In the same vein, United States West Texas Intermediate (WTI) crude declined 2.73 per cent, or $1.55, to settle at $55.27 per barrel, the lowest price recorded since February 2021 during the COVID-19 pandemic.

The sharp sell-off came despite short-term market support from the United States’ seizure of a Venezuelan oil tanker last week and a spike in Chinese purchases of Venezuelan crude ahead of fresh sanctions. Analysts said these factors failed to offset the growing volume of oil held in floating storage, which continues to suppress prices.

Oil markets have remained under sustained pressure this year as OPEC+ members ramped up production after years of output restraint. The increased supply has coincided with softer demand expectations and a reassessment of geopolitical risks.

Investors are also pricing in the possibility of reduced global tensions, with US President Donald Trump pushing for a potential peace agreement between Ukraine and Russia, a move that could ease disruptions to energy supply chains.

The downturn in crude prices comes as Nigeria’s Senate approved a $60 per barrel oil benchmark for the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, reflecting growing caution over revenue projections amid volatile global energy markets.