Nigeria’s oil edged closer to $69 per barrel as global tensions lifted prices sharply.
Bonny Light, Nigeria’s premium grade, traded around $69, marking a third consecutive day of gains.
Rising Oil Prices
Brent crude rose 94 cents to $69.34, while US WTI gained 92 cents to $64.
Both contracts reached their highest levels since September 29, rising roughly 5% since Monday.
US-Iran Tensions
The market reacted to fears that the US might strike Iran militarily.
President Trump intensified pressure on Tehran to halt its nuclear programme through threats.
US naval forces moved closer, raising the risk of disrupted Middle East supplies.
Trump warned Iran that “time was running out” before the United States might attack.
He described a “massive armada” heading towards Iran, ready to act swiftly and violently.
US officials confirmed roughly ten ships currently patrol the Middle East.
Read Also: Nigeria’s Crude Oil Exports Seen Falling 14% To 793,000 Bpd In March
Iran produces 3.2 million barrels daily and borders the strategically critical Strait of Hormuz.
About 20% of global crude oil flows through this narrow waterway.
Traders added a risk premium to prices due to rising geopolitical tensions.
The White House threatened to stop supporting Iraq, another major oil-exporting country.
Nigeria’s Production Limits
Temporary supply disruptions in Kazakhstan and the US affected production briefly.
Kazakhstan’s Tengiz oilfield restarted after electrical fires, with full production expected soon.
US producers brought wells back online after Winter Storm Fern caused shutdowns.
US crude inventories decreased by 2.3 million barrels last week to 423.8 million barrels.
Nigeria produced an average of 1.45 million barrels per day in 2025, excluding condensates.
OPEC+ caps Nigeria’s crude production at 1.5 million barrels per day through December 2026.
The federal government launched a licensing round offering 50 blocks to attract investors.
Nigeria targets 2.7 million barrels per day by 2027, but OPEC limits constrain growth.
Recent discoveries like Chevron/NNPC Awodi-07 will begin commercial production between 2027–2031.
Consequently, Nigeria’s oil story currently reflects global events more than domestic production.
