Crude oil price fell below $90 a barrel on Tuesday.
Brent crude, a global oil benchmark, dropped by 3 percent to $89.7 a barrel for the first time since August 31.
The US West Texas Intermediate dropped by 2.13 percent to $84.53 per barrel.
The development came as US President Donald Trump said on Monday that he plans to hold off from new military strikes against Iran after appeals from countries in the region, including from Qatar’s prime minister.
Trump told reporters that the war with Iran could end “fairly soon,” adding that Tehran was “talking very politely” with Washington.
“The United States of America is fully locked and loaded with the best equipment ever made, and we don’t think there’s going to be any reason to use it,” Trump said.
The US president said he was acting “at the behest of countries that are their neighbors” and specifically cited Qatar, Saudi Arabia, the United Arab Emirates (UAE), Bahrain, and Kuwait as countries that prefer the US not launching new attacks.
On November 4, Democrats won full control of the US congress in a sweeping midterm rout, pushing oil prices below $95 a barrel.
For Nigeria, lower crude prices could weaken oil export earnings and government revenue, while cheaper petroleum products on the international market could provide some relief by driving down domestic petrol and diesel prices.
