Nigerian Oil Stabilizes at $67 Amid Easing U.S.-China Tensions and Domestic Production Boost
Nigerian crude oil prices stabilized near $67 per barrel this week as global markets showed signs of recovery following recent turbulence. Bonny Light, Nigeria’s flagship crude, maintained its value, while major international benchmarks such as Brent and WTI crude also recorded gains. Analysts say the rebound reflects cautious optimism among investors, who are betting that easing geopolitical tensions could support short-term market stability.
The recovery comes after a sharp 4% decline last Friday, largely triggered by escalating U.S.-China trade tensions. Investors were initially unsettled by China’s expansion of rare earth export restrictions and U.S. threats of 100% tariffs on Chinese imports. However, comments from President Trump signaling a willingness to “help China, not hurt it” and hints of diplomatic engagement ahead of the APEC summit in South Korea have restored some confidence in oil markets.
Market watchers highlight that crude oil production in Nigeria also continues to strengthen. Average daily output rose to 1.68 million barrels per day in the second quarter of 2025, with OPEC+ maintaining a cautious approach to production cuts to avoid oversupply. Analysts suggest that this steady output, coupled with controlled global supply, is helping Nigeria’s crude hold firm despite ongoing uncertainty in international markets.
Domestically, Nigeria’s oil infrastructure is receiving a significant boost with the launch of the country’s first fully locally owned Floating Storage and Offloading (FSO) vessel near the Bonny export terminal. The 2.2-million-barrel capacity vessel is set to modernize crude transportation, reduce pipeline reliance, and minimize risks of theft and vandalism, positioning Nigeria to handle exports more efficiently and safely.
Despite the recent rebound, oil markets remain finely balanced between optimism over diplomatic developments and lingering economic uncertainties. Traders are approaching the market with caution, recognizing that while easing U.S.-China tensions could provide stability, volatility may continue in the short term. Observers note that the combination of Nigeria’s domestic production gains and gradual global supply adjustments could make Bonny Light a key player in stabilizing West African crude exports in the months ahead.
source: Nairametrics