Nigeria’s flagship crude, Bonny Light, stabilized at $65 per barrel following a sharp decline in global oil prices, marking the largest drop in nearly three weeks. The market slump is largely driven by growing concerns over global oversupply, with traders closely watching production trends and inventory levels worldwide. Bonny Light last traded at $65.77, down from late November highs of around $66–$67.
The decline comes as Nigerian crude continues to average $65.5 per barrel this month, a significant drop from $70.20 in September 2025. This is notably below the nation’s 2025 budget benchmark of $75 per barrel, putting pressure on government revenues and highlighting the economic implications of volatile oil markets.
Brent crude hovered slightly above $62 per barrel, while West Texas Intermediate (WTI) remained near $59. Analysts anticipate updates from the International Energy Agency (IEA), OPEC, and the U.S. Energy Information Administration (EIA) this week, which may provide insight into future supply, demand, and pricing trends. Since early November, crude prices have fluctuated within a narrow $4-per-barrel range, reflecting market uncertainty around sanctions on Russia and potential export restrictions.
Global oil markets are facing a looming supply glut that could intensify in 2026. OPEC+ production targets have increased, while non-OPEC output, including the U.S. and Brazil, continues to grow. Nigeria’s own production reached 1.40 million barrels per day in October, but remains far below its 2025 budget goal of over 2 million bpd. The IEA projects a surplus of 2.3 million bpd this year, rising to 4.09 million bpd in 2026, signaling potential further downward pressure on prices.
Meanwhile, geopolitical and trade developments are adding complexity. India, a major buyer of Russian crude, plans to reduce purchases, while tensions between Ukraine and Russia continue to threaten energy infrastructure. Market analysts predict that Brent crude could average $57 per barrel next year if current conditions persist, highlighting how oversupply and geopolitical dynamics are shaping global energy markets.
source: Nairametrics