Nigeria’s Crude Oil Prices Surge Above $113 as Iran Crisis Disrupts Global Supply

Nigeria’s crude oil grades have rallied sharply as tensions in the Middle East continue to disrupt global energy supply chains. The ongoing standoff between the United States and Iran, alongside the near-total blockade of the Strait of Hormuz, has shaken oil markets and driven up prices. As peace talks stall, traders are reacting to the uncertainty, pushing up the value of crude across key benchmarks and strengthening Nigeria’s position in the global oil market.

Brent crude climbed by as much as 2.5 percent to reach $108 per barrel, while West Texas Intermediate approached $97. Nigerian light sweet crude grades—such as Bonny Light, Qua Iboe, and Brass River—have surged even higher, crossing $113 per barrel, with some spot prices reportedly hitting $130. This price jump reflects increased demand from European and Asian buyers seeking alternative supply sources amid disruptions in the Middle East.

The premium on Nigerian crude is largely driven by its low sulfur content, which makes it easier and more cost-effective for refineries to process into high-value products like diesel and jet fuel. With Middle Eastern supply constrained, refiners are turning to West African crude, further boosting Nigeria’s export appeal. However, the rally showed signs of easing after reports emerged that Iran had proposed a plan to reopen the Strait of Hormuz, offering a possible path toward de-escalation.

Despite these diplomatic signals, tensions remain high. Iran has insisted it will not engage in negotiations under threats, while U.S. leadership continues to weigh its options. The blockade has significantly reduced traffic through the critical waterway, cutting off shipments of fuel, gas, and fertilizers. Analysts warn that the prolonged disruption could trigger inflationary pressures globally, with the International Energy Agency describing the situation as one of the largest supply shocks in recent history.

Back home, Nigeria faces a delicate balancing act. While crude production has climbed to about 1.84 million barrels per day in April 2026, the country is struggling to meet both export demand and domestic needs. The Dangote Refinery, for instance, requires around 15 cargoes monthly to operate at full capacity but has received fewer allocations, forcing it to import crude. This highlights a growing tension between maximizing foreign exchange earnings and ensuring sufficient local supply, as producers often favor more lucrative international markets.

source: nairametrics