Global oil prices fell sharply on Tuesday, sinking to their lowest levels in four years.

Brent crude, the international benchmark, dropped 2.71 per cent ($1.64) to settle at $58.92 per barrel, marking its lowest level since early 2021.

Similarly, United States West Texas Intermediate, WTI crude slid 2.73 per cent ($1.55) to $55.27 per barrel, the lowest since February 2021, during the COVID-19 pandemic.

The declines came despite temporary support from the United States’ seizure of a Venezuelan oil tanker last week and a surge in Chinese purchases of Venezuelan crude ahead of sanctions. Energy experts said a growing glut of oil held in floating storage continues to cap prices.

The market has been under sustained pressure this year as OPEC+ members rapidly increased production following years of output cuts. At the same time, investors are factoring in lower geopolitical risks, with US President Donald Trump pushing Ukraine towards a possible peace agreement with Russia.

The development comes as the Nigerian Senate endorsed a $60 benchmark for the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper.