Nigerian crude oil has surged to its highest levels in recent years, with benchmark grades trading above $113 per barrel as global energy markets react to escalating tensions around the Strait of Hormuz. In some spot transactions, prices reportedly climbed as high as $130 per barrel as refiners scramble for alternative supplies outside the Middle East.
Key Nigerian grades such as Bonny Light, Qua Iboe, and Brass River are now commanding a premium of about $5 above Brent crude, which itself rose sharply to around $108 per barrel. West Texas Intermediate also strengthened, moving close to $97, reflecting widespread supply fears in global markets.
The rally comes after renewed geopolitical tensions between Iran and Western powers led to the collapse of ceasefire discussions, while shipping disruptions in the Strait of Hormuz have effectively restricted commercial tanker movement for several weeks. Analysts say this has forced refiners in Europe and Asia to aggressively seek alternative crude sources, particularly from West Africa.
Energy experts note that Nigerian crude is benefiting from its “sweet” quality—low sulfur content that makes it easier and cheaper to refine into high-value products like diesel and jet fuel. With Middle Eastern supplies tightening, demand for Nigerian grades has surged, positioning them as a critical replacement in global supply chains.
While the price spike boosts Nigeria’s export earnings, it also highlights a domestic balancing challenge. Increased crude demand abroad is competing with local refinery needs, particularly the Dangote Refinery, which still requires significant crude allocations to operate at full capacity. Analysts warn that while the current price boom strengthens fiscal inflows, it also exposes Nigeria to volatility if geopolitical tensions ease and global oil prices retreat.
source: Business day