Oil price falls to $60 per barrel below 2026 budget benchmark

By : Guardian Nigeria

Date: 8 January 2026 4:23am WAT

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Barrel of petroleum product

Barrel of petroleum product

Oil prices dropped on Wednesday as the market reacted to United States President Donald Trump’s announcement that the U.S. had secured a deal to import up to $2 billion in Venezuelan crude.

Brent crude dropped by 0.38 percent to $60.56 a barrel, while US West Texas Intermediate crude fell by 1.17 percent to $56.46 a barrel. Earlier yesterday, Trump said Venezuela will turn over between 30 million and 50 million barrels of oil to the US. Trump’s announcement followed his declaration that the U.S. will take over the affairs of Venezuela until a political transition is achieved — after capturing Venezuelan President Nicolás Maduro and extracting him to New York.

According to Reuters, Trump’s announcement would increase supplies to the U.S., the world’s largest consumer oil consumer. The current oil price threatens Nigeria’s budget implementation, as it is lower than the 2026 budget benchmark of $64.85 per barrel.

On December 19, President Bola Tinubu presented the 2026 federal budget of N58.18 trillion, with a “conservative” crude oil benchmark of $64.85 per barrel.

“The 2026–2028 Medium‑Term Expenditure Framework and Fiscal Strategy Paper sets the parameters for this budget. Our projections are based on a conservative crude oil benchmark of US$64.85 per barrel; crude oil production of 1.84 million barrels per day; and an exchange rate of N1,400 to the US Dollar for the 2026 fiscal year,” he said.

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