Crude oil prices surged on Thursday, approaching $84 per barrel — the highest level this year and far above Nigeria’s 2026 budget benchmark of $64.85.
Consequently, markets are on edge as tensions in the Middle East escalate, threatening the flow of crude from one of the world’s most crucial regions.
Oil Prices Surge
Brent crude, the global benchmark, jumped 12% over the first three days of the week, while West Texas Intermediate hovered near $78.
This surge reflects more than market speculation; it shows the world reacting to geopolitical instability.
Middle East Tensions
The US and Israel intensified operations against Iran, disrupting oil flows, while tanker traffic through the Strait of Hormuz — a critical artery for global oil — has almost halted.
As a result, some Persian Gulf producers have already started cutting output in response to the bottleneck.
Meanwhile, China, the world’s top oil importer, ordered its largest refiners to halt diesel and petrol exports, prioritising domestic supply.
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In addition, India and Japan suspended exports or requested releases from strategic petroleum reserves.
Impact On Nigeria
For Nigeria, rising prices create a double-edged sword.
On one hand, higher crude prices increase government revenue; on the other, local fuel prices have climbed sharply.
Dangote Refinery raised its gantry price by ₦100 to ₦874 per litre, and NNPCL increased petrol at Abuja outlets to ₦960 per litre.
Analysts warn the situation could worsen.
Priyanka Sachdeva of Phillip Nova Pte noted that further strikes or disruptions could sharply spike prices.
Likewise, Goldman Sachs CEO David Solomon described the Middle East conflict as “highly uncertain,” stressing that it could continue to ripple through global markets and local economies alike.
