Oil prices dropped on Wednesday as the market reacted to United States President Donald Trump’s announcement that the US had secured a deal to import up to $2 billion in Venezuelan crude.
Brent crude dropped by 0.38 percent to $60.56 a barrel by
17.00 WAT, while US West Texas Intermediate crude fell by 1.17 percent to
$56.46 a barrel.
Earlier today, Trump said Venezuela will turn over between
30 million and 50 million barrels of oil to the US.
Trump’s announcement followed his declaration that the US
will take over the affairs of Venezuela until a political transition is
achieved — after capturing Venezuelan President Nicolás Maduro and extracting
him to New York.
According to Reuters, Trump’s announcement would increase
supplies to the US, the world’s largest consumer oil consumer.
The current oil price threatens Nigeria’s budget
implementation, as it is lower than the 2026 budget benchmark of $64.85 per
barrel.
On December 19, President Bola Tinubu presented the 2026
federal budget of N58.18 trillion, with a “conservative” crude oil benchmark of
$64.85 per barrel.
“The 2026–2028 Medium‑Term Expenditure Framework and
Fiscal Strategy Paper sets the parameters for this budget. Our projections are
based on a conservative crude oil benchmark of US$64.85 per barrel; crude oil
production of 1.84 million barrels per day; and an exchange rate of N1,400 to
the US Dollar for the 2026 fiscal year,” he said.
The budget carries a deficit of N23.85 trillion,
representing 4.28 percent of gross domestic product (GDP).
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