Oil prices fell to seven-month low yesterday, after news of increases in supply by several key producers weakened the Organisation of the Petroleum Exporting Countries (OPEC) attempts to support the market through output freeze.
The oil benchmark brent fell from $47.06 it sold on Monday to settle at $46.91 a barrel, while the U.S from $44.35 a barrel to $44.20. The fall for the United States is the lowest since November 2016.
The crude oil benchmark was set at 2.2 million barrels per day at a price of $42.5 in the 2017 budget, but the benchmark has however been pushed by the senate to $44.5 a barrel.
The drop in crude oil is alarming for Nigeria as the financing for the 2017 budget is reliant on the revenue from the sale of black gold.
The current oil prices has resulted to Nigeria losing over $11.5 million