Crude oil prices continue to decline as the naira strengthens slightly against the dollar in the foreign exchange market.
Oil prices dropped by nearly two percent, hitting a 12-week low following reports that OPEC+ will proceed with its planned oil output increase in April. Brent crude futures fell by $1.19, or 1.6 percent, to close at $71.62 per barrel, while the U.S. West Texas Intermediate (WTI) crude dropped by $1.39, or two percent, settling at $68.37 per barrel. These marked the lowest closing prices for Brent since December 6 and for WTI since December 9.
Reports indicate that the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, including Russia (OPEC+), have opted to maintain their scheduled production increase in April.
Meanwhile, in the foreign exchange market, the naira appreciated to ₦1,512 per dollar in the parallel market on Wednesday, compared to ₦1,515 per dollar on Tuesday. However, in the Nigerian Foreign Exchange Market (NFEM), the naira depreciated slightly, trading at ₦1,505 per dollar, down from ₦1,502 per dollar the previous day.
Data from the Central Bank of Nigeria (CBN) indicated a ₦3 depreciation in the indicative exchange rate for the naira, rising from ₦1,502 to ₦1,505 per dollar on Tuesday. As a result, the gap between the parallel market rate and the NFEM rate narrowed from ₦13 per dollar on Tuesday to ₦7 per dollar.
