Brent, Nigeria's benchmark fell to $84.35 a barrel at around 5.50 p.m. on Monday as the spike in the currency and growing recessionary fears endangered global demand.
Nigeria may have missed out on the oil bonanza that many oil-producing nations have experienced for the majority of 2022 if the trend persists.
Nigeria has been unable to benefit from the worldwide price increase, which for months stayed around $100 a barrel, due to its declining output, which was approximately 972,000 barrels in August.
The nation that has led OPEC's performance decline for months attributes its problems to oil theft and underinvestment in the upstream oil and gas industry.
The global oil benchmark, however, fell to its lowest intraday level since January on Monday as the US dollar rose to a record high, continuing a similar pattern that saw crude lose by about 6% last week for a fourth straight week, the worst losing streak this year.
Since the US Federal Reserve and other prominent central banks are rapidly raising interest rates to combat inflation, the outlook for energy consumption is negatively impacted, and investors' appetite for risk is being sapped, putting the commodity on track for a significant quarterly decline.
The tightening move has contributed to the US dollar reaching a record high, increasing the cost of commodities for foreign consumers.
The decline in prices may prompt OPEC and its partners to think about intervening to stop it, either verbally or by declaring a decrease in output. OPEC+ announced a reduction in token production earlier this month and said its members will keep an eye on the market.
The chief executive officer of Black Gold Investors LLC, Gary Ross, warned at a conference in Singapore that the upward pressure on the dollar "is a wrecking ball for commodities" and suggested that OPEC should slash production.
He told Bloomberg that "the supply-demand balance has caught up and we're increasing stocks as we head into the fourth quarter."
The route of Tropical Storm Ian, which is predicted to become a hurricane this week when it hits the Florida mainland, was being monitored by dealers of crude oil as well.
Following a significant drop on Friday, oil prices have been declining ever since.
Prices fell to their lowest level in eight months as worries about a potential recession persisted among investors and worldwide monetary tightening by central banks to combat inflation and a strong currency.
The OPEC and its allies may think about acting to stop the decline in prices in response to the price decline.
Analysts feel that these market interventions are both unlikely and ineffectual given the current circumstances.
The International Monetary Fund (IMF) revised its estimate of global economic growth this year from 3.6 per cent in April to 3.2 per cent in July.
For the second time this year, the World Bank has lowered its projection for global economic growth in 2022 from 3.2% to 2.9%.