TIMELINE: How Global Oil Prices Plunged in 4 months

Global oil prices have experienced a significant decline over the past four months, with a particularly notable drop in August. The timeline of this decline began in April when oil prices plunged by 6%, with Brent crude dipping to approximately $70 per barrel and West Texas Intermediate (WTI) following suit due to a decision to boost production.

Prices continued to fall, hitting their weakest levels since 2021 in early April. Despite some recovery, prices remained subdued, with Brent crude falling to $70 per barrel by June 23, the lowest price since December 2021.

This decline has been linked to concerns about weakening oil demand in major economies like the United States and China, posing a threat to Nigeria's fiscal plan and potentially deepening the Federal Government's budget deficit. This could lead to increased borrowing, limiting fiscal flexibility and undermining investor confidence.