Nigeria’s Bonny Light crude oil price has dropped sharply by 14.2 percent, falling to $94.41 per barrel from $110 earlier in the week, amid changing dynamics in the global oil market.
The decline follows a ceasefire announcement linked to former U.S. President Donald Trump, which helped calm tensions affecting key oil supply routes.
Improved stability in global shipping lanes also contributed to the price drop, with Iran assuring the international community of safe passage for oil tankers through the Strait of Hormuz—one of the world’s most critical oil transit corridors. This reassurance eased earlier fears of supply disruptions that had pushed crude prices upward in recent weeks.
Similarly, global benchmark Brent crude recorded a decline, slipping to around $94 per barrel from $100, reflecting broader market adjustments.
Oil marketers have welcomed the easing geopolitical tensions, expressing optimism that it will stabilize the market and reduce price volatility.
Further pressuring prices, the United States reportedly lifted sanctions on Iranian and Russian oil exports, a move aimed at boosting supply and calming earlier spikes caused by shipment disruptions.
In addition, fresh data from the U.S. Energy Information Administration showed a rise in crude inventories, with stockpiles increasing by 3.1 million barrels to 464.7 million barrels—about two percent above the five-year average.
Reacting to the development, Olatide Jeremiah, CEO of PetroleumPrice.ng, said the drop in crude prices could lower refining costs globally.
He noted that if the trend continues, consumers may begin to see reduced prices for petroleum products, including petrol, offering relief to motorists and transport operators facing high fuel and transport costs.
However, he cautioned that Nigeria’s crude oil revenue could decline due to the price drop, although the impact may be limited if budget assumptions remain intact.
Nigeria’s 2026 budget is based on a production benchmark of 1.84 million barrels per day, a crude price of $64.85 per barrel, and an exchange rate of ₦1,400 to the dollar.
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