Global oil prices decline amid 2025 demand concerns 

For major import-dependent economies such as Nigeria, this development could signal more economic turbulence ahead.

Both Brent and U.S. oil benchmarks are poised to close the week nearly 3% lower, underscoring the bearish sentiment gripping the market.

Brent and WTI Crude Futures Drop 

On Friday, Brent crude futures slid by 41 cents, or 0.56%, to $72.47 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures fell by 39 cents, or 0.56%, settling at $68.99 per barrel.

These declines continue a week-long trend of reduced prices, driven by mounting doubts over global economic recovery and oil demand stability.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, recently revised their global oil demand growth forecast for 2024 downward for the fifth consecutive month.

These persistent downward adjustments reflect an uncertain global economic outlook, shaped by sluggish industrial output, inflationary pressures, and slowing consumer demand in major oil-consuming nations.

For Nigeria and other oil-importing economies, the OPEC+ forecast signals potential challenges, including higher energy costs, strained budgets, and economic volatility.

J.P. Morgan analysts foresee the oil market moving from a balance in 2024 to a surplus of approximately 1.2 million barrels per day (bpd) in 2025. This surplus projection stems from expectations of a significant increase in non-OPEC+ production, estimated at 1.8 million bpd, while OPEC’s output remains steady.

The predicted surplus could place downward pressure on oil prices, further straining the revenues of oil-exporting nations while providing temporary relief to importers. However, prolonged price instability could discourage investment in new production capacities and energy infrastructure.

Amid these market shifts, G7 countries are reportedly considering tightening their price cap on Russian oil exports.

For Nigeria, a major oil importer, the shifting dynamics in global oil markets present both challenges and opportunities.

As 2025 approaches, the oil market faces significant uncertainties.

The interplay between OPEC+ policies, non-OPEC+ production growth, geopolitical tensions, and shifting demand patterns will shape the trajectory of global oil prices. Industry stakeholders, from producers to importers, will need to remain adaptable to ensure stability in an increasingly volatile market.