Following Israel’s military strikes on Iran, which heightened fears of a wider Middle East conflict, Nigeria’s major crude grades—Bonny Light, Brass River, and Qua Iboe—rose above $77 per barrel on Friday and continued to do so until Sunday.
According to data from Oilprice.com as of Sunday, Bonny Light surged to $78.62 per barrel, while Brass River and Qua Iboe closed at $77.09 and $77.14, respectively.
The rally marked a sharp jump from the average of $65 per barrel recorded just days earlier. The new price levels exceed the Federal Government’s 2025 budget benchmark of $75 per barrel by more than $2, potentially offering short-term fiscal relief.
However, energy analysts warn that higher crude prices could trigger an increase in local fuel prices, as refiners face rising costs for crude, the primary feedstock for petrol and diesel production.
Oilprice.com attributed the price spike to renewed geopolitical tensions in the Middle East. “The geopolitical risk premium is back,” the platform noted, adding that Brent futures climbed to $74.23 per barrel and WTI to $73 amid expectations of a continued battle between Israel and Iran as well as fears of disruptions to key oil supply routes.
Though Israel’s strikes did not directly hit oil infrastructure, the anticipation of Iran’s response, which eventually happened, unsettled global markets on Friday.
Israel reportedly shut down some gas production facilities ahead of the weekend as a precaution, while concerns grow over potential threats to Red Sea shipping lanes and the strategic Strait of Hormuz.
