Crude oil prices are edging closer to the $100 per barrel mark, with Brent crude rising to $96.98 per barrel on Thursday as renewed military tensions between the United States and Iran fuel concerns over global oil supplies. The latest surge is already drawing attention in Nigeria, where petrol prices have moved above N1,310 per litre in some locations.
The international benchmark had earlier crossed the $97 mark before easing slightly, while US West Texas Intermediate (WTI) gained 21 cents to trade at $91.22 per barrel. The increase comes amid continued Iranian strikes on US Gulf allies, with Kuwait reporting that its air defence systems were responding to missiles and drones.
The growing tension is particularly significant for the global oil market because of the Strait of Hormuz, one of the world’s most important routes for crude oil shipments. More than 17 million barrels of oil reportedly passed through the waterway on Monday under US military protection, compared with about 20 million barrels of crude oil and petroleum products that moved through the route daily before the conflict began.
For Nigerian motorists and businesses, the rise in international crude prices could soon become more noticeable at filling stations. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that some marketers may review petrol pump prices as new petroleum products enter the market. With crude oil rising from around $75 per barrel in July to above $96 in September, marketers are increasingly watching replacement costs and international market conditions.
The latest rally has pushed oil prices more than 7% higher this week, highlighting how quickly geopolitical tensions can affect energy markets and, ultimately, fuel costs. As traders continue to monitor the US-Iran conflict and the safety of shipments through the Strait of Hormuz, Nigerian consumers may also be watching closely to see whether the renewed pressure on global oil prices translates into another change at the pump.
source: nairametrics
