Crude oil prices continued their downward trend, hitting a 12-week low as the naira strengthened against the dollar in the parallel market on Wednesday.
Brent crude fell by $1.19 or 1.6 per cent to close at $71.62 per barrel, while the United States West Texas Intermediate (WTI) dropped by $1.39 or two per cent to $68.37 per barrel.
The price decline follows reports that OPEC+ — the Organisation of the Petroleum Exporting Countries and its allies, including Russia — will proceed with a planned oil output increase in April.
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Meanwhile, the naira appreciated to N1,512 per dollar in the parallel market, from N1,515 per dollar recorded on Tuesday. However, in the Nigerian Foreign Exchange Market (NFEM), the naira depreciated to N1,505 per dollar, compared to N1,502 per dollar the previous day.
Data from the Central Bank of Nigeria (CBN) showed that the margin between the parallel market and the NFEM rate narrowed to N7 per dollar, down from N13 per dollar on Tuesday.
Market analysts attributed the naira’s stability to increased forex liquidity and ongoing interventions by the CBN.