Crude oil prices crashed further on Wednesday as Brent fell to $60 per barrel down from about $63 on Tuesday.
According to Reuters, Brent futures were down $2.36, or 3.76 per cent, to $60.46 a barrel at United States West Texas Intermediate crude futures were down $2.37, or 3.98 per cent, at $57.21.
Aside from threatening the 2025 budget, the crash will also hit deep into the projected margins of both international and indigenous oil companies, especially with Nigeria’s high production cost.
The trade war between US President Donald Trump and China is fuelling speculations of a recession.
China announced additional tariffs on US goods in retaliation against Trump’s tariff policy.
China said it will impose 84 per cent tariffs on US goods from Thursday, up from the previously announced 34 per cent, according to the finance ministry.
The escalating trade war between China and the US is stoking fears of a global recession, UBS analyst Giovanni Staunovo told Reuters.
“While oil demand has likely not suffered yet, rising concerns of weaker oil demand over the coming months require lower prices to trigger supply adjustments to prevent an oversupplied market,” Staunovo added.
