Global oil prices on Wednesday fell to $64 per barrel, dipping below Nigeria’s 2026 budget benchmark of $64.85.
Brent crude dropped toward $64 per barrel, dipping below Nigeria’s 2026 budget benchmark of $64.85, while US West Texas Intermediate (WTI) traded below $60 per barrel.
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The slide comes amid heightened volatility in crude markets, driven by concerns that global supply could outpace demand in the near to medium term, Bloomberg reports.
The decline was fuelled by a mix of geopolitical uncertainty and expectations of continued strong output from major oil producers.
The market’s bearish tone is reinforced by signals from the International Energy Agency (IEA), which is set to release its monthly oil market outlook later on Wednesday.
Concerns about oversupply and sustained downward pressure on prices are mounting.
IEA Executive Director Fatih Birol said at a panel during the World Economic Forum in Davos that for “at least three to four years, we may well see downward pressure on oil and gas prices because of the huge amount of supply coming from the US and some other countries.”
Traders are closely watching Venezuelan crude exports, which could be redirected following recent US interventions, potentially adding excess barrels to an already saturated market.
Crude’s prompt spreads remain in backwardation, suggesting near-term tightness despite broader bearish sentiment.
The combination of oversupply risks and geopolitical tensions has created a fragile outlook for oil prices in 2026.
Credit: Oilprice.com
