Oil prices continued their dramatic slump to near-six-year lows on Tuesday, as an oil minister from OPEC (Organization of the Petroleum Exporting Countries) reiterated that the group would not be changing its production strategy.
WTI crude for February delivery fell below $45 a barrel on Tuesday morning for the first time since April 2009 and was trading at $44.51 a barrel at 7.30 a.m. GMT. Brent crude futures lost over 4 percent in the morning session and were trading at $45.41 a barrel. Both have crash by around 60 percent since mid-June last year.
Weak global demand and booming U.S. shale oil production are seen as two key reasons behind the price plunge, as well as OPEC’s reluctance to cut its output.
Nigeria’s crude oil production, which has been going downward in the past few years, looks set to its biggest decline in oil price this year amid the weak global demand, reduction in capital investment by oil companies on the back of low oil prices, among others. However Nigeria is set to shift from dependency on oil as FG is revamping the Agricultural sector in the country to help stabilize the country economy.