Global crude oil prices fell on Thursday as the market digested OPEC+’s decision to complete its planned 1.65 million barrels per day production cut rollback and maintain its output policy after September.
As at the time of writing 07:13 am (WAT), Brent crude stood at $94.31 per barrel, down 1.38%, while West Texas Intermediate (WTI) crude was trading at $89.92 per barrel, down 1.20%, extending the pullback after prices climbed sharply on renewed supply concerns linked to the Iran conflict.
The decline followed OPEC+’s decision to complete the phased reversal of the 1.65 million bpd cuts introduced in 2023. The September adjustment represents the final stage of the planned restoration of those volumes, with the alliance now expected to keep its production policy unchanged for October.
However, the additional OPEC+ supply has not fully translated into higher physical availability. Production by several members remains below their assigned quotas, while disruptions around the Strait of Hormuz have constrained Gulf exports and kept the physical crude market exposed to geopolitical shocks.
For Nigeria, the fall in Brent provides some relief to petroleum-product marketers after the benchmark moved towards $96 per barrel. A sustained decline in crude prices could moderate replacement costs for crude and refined products, easing some of the pressure that feeds into domestic petrol and diesel pricing.
Nevertheless, Brent remains elevated at above $94 per barrel, meaning the latest decline is not yet sufficient to signal a major reversal in the international oil market. Any renewed disruption in the Gulf particularly the strait of Harmuz could quickly restore the risk premium that pushed prices higher in recent sessions.
OPEC+ is also turning its attention to 2027 production baselines, which will determine how individual members’ quotas are calculated. A capacity assessment by DeGolyer and MacNaughton is expected later in September and could influence the next phase of the alliance’s production policy.
The immediate market focus, however, remains on the balance between the additional OPEC+ barrels and continuing geopolitical supply risks, with Brent’s ability to hold or break below the $94 per barrel level likely to provide the next signal for crude-linked pricing pressure in Nigeria.