Nigeria’s main crude oil grades — Bonny Light, Brass River, and Qua Iboe — jumped above $77 per barrel on Friday and kept their rise up to Sunday. The price increase came after Israel launched a military attack on Iran, adding to worries that the conflict may affect the flow of oil from the Middle East.
According to data from Oilprice.com on Sunday, Bonny Light jumped up to $78.62 per barrel. Brass River was selling at $77.09 per barrel, while Qua Iboe closed at $77.14 per barrel. The new prices were a big rise from the average price of $65 per barrel a few days earlier. The prices are now more than $2 above the Nigerian federal government’s 2025 budget benchmark of $75 per barrel, which may bring some short-term financial relief to the country.
Some energy analysts have, however, raised concerns that the rise in crude oil prices may affect local petrol prices in the country. This is because Nigerian refineries buy crude oil to produce petrol and diesel. If the cost of crude goes up, it will affect the price of petrol and diesel in the country. That may put more pressure on businesses and consumers.
The rise in prices followed growing worries about conflict in the Middle East. Oilprice.com said, “The geopolitical risk premium is back.” The platform explained that the rise was due to the attack by Israel on Iran and the fear of future attacks. There were reports that Iran may respond, which made traders nervous and unsure about future supply.
Brent crude, which is a benchmark for oil prices around the world, jumped to $74.23 per barrel. West Texas Intermediate (WTI) also rose to $73 per barrel. Market experts say this upward trend may continue if the conflict between Iran and Israel grows. There are worries that key oil routes, especially the Strait of Hormuz, may be affected.
The Strait of Hormuz is a very important waterway. It is a small strait through which nearly 19 million barrels of oil pass each day — nearly a fifth of the world’s total oil consumption. If Iran were to close or attack this strait, it would affect the flow of oil and cause prices to rise even further.
Some reports say Israel shut down some of its gas production facilities as a precaution. There are growing worries about the safety of the Red Sea and the Strait of Hormuz. If these areas become dangerous for oil ships, it may cut the supply of oil to many countries.
It is worth noting that in February and March this year, oil prices fell to about $60 per barrel. That drop came after US President Donald Trump raised tariff measures against many products. But now the rise is not about market fundamentals or OPEC decisions; it is about conflict and risk to future supply.
The Middle East is a key supplier of oil to many countries around the world, including European and Asian markets. The fear is that if the conflict grows, it may cut back the flow of oil and send prices much higher.
Some related reports say Peter Obi has criticized President Bola Tinubu’s slow response to the country’s problems. Oil prices are not the only worries; there are reports that police have arrested suspected kidnappers with weapons in Niger.
The rise in oil prices highlights the vulnerability of the market to conflict and geopolitical tensions. It shows how quickly prices can respond to wars and attacks, putting pressure on businesses and consumers. The future will now depend on whether peace can be restored in the Middle East or whether the conflict will grow and affect the flow of oil.
