Nigeria’s premium crude blend, Bonny Light, steadied at $66 per barrel on Wednesday, lifted by renewed optimism over trade talks between U.S. President Donald Trump and China’s President Xi Jinping. The marginal gain followed fresh data showing that U.S. fuel and crude inventories fell more than expected, signaling stronger demand in the world’s largest oil consumer.
Although Bonny Light remains below its October peak of $75 per barrel, traders say the latest rebound suggests that market sentiment may be turning more positive after weeks of volatility. The rally also mirrored gains in the broader oil market, where West Texas Intermediate (WTI) futures climbed 0.6% to $60.5 per barrel, and Brent crude advanced 0.8% to $65.
According to the U.S. Energy Information Administration (EIA), American crude oil stockpiles fell by nearly 7 million barrels last week, far exceeding analysts’ forecasts of a modest 211,000-barrel drop. The sharp decline in inventories, alongside resilient demand, has forced traders to reconsider earlier fears that the global oil market was heading for oversupply.
The market also drew strength from broader geopolitical developments. The United States and South Korea finalized a trade agreement, while Trump’s upbeat tone on China helped ease concerns that tariff wars would dampen global growth. However, uncertainty lingers as the U.S. Federal Reserve cut interest rates by 25 basis points, with Chair Jerome Powell warning of persistent risks to the economy.
Meanwhile, Nigeria’s oil output dipped to 1.39 million barrels per day in September, down from 1.43 million in August, following a three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). The federal government aims to raise its OPEC+ quota and boost production to 2.06 million barrels per day. In a related development, the Dangote refinery is set to begin oil production soon, with Oil Mining Leases (OML) 71 and 72 expected to deliver 40,000 barrels daily — a move that could strengthen Nigeria’s position in the global energy market.
source: nairametrics