Nigeria’s crude oil grades recorded a sharp rally as tensions in the Middle East deepened, with stalled negotiations between the United States and Iran keeping the strategic Strait of Hormuz largely shut and disrupting global energy flows.
Brent crude briefly rose to around 108 dollars per barrel, while US benchmark West Texas Intermediate approached 97 dollars. With some spot transactions reported even higher, Nigerian grades, including Bonny Light, Qua Iboe, and Brass River, soared above $ 113 per barrel. The rise in demand from European and Asian consumers turning to West African crude mirrors the restriction of Middle Eastern supplies.
The News Chronicle notes that, more often, refiners are using Nigeria’s low-sulfur crude, which is easier to refine into premium fuels like diesel and aviation gas, thereby driving prices above world standards.
Gains, meanwhile, started to slow after rumors surfaced that Tehran had floated a plan to reopen the Straits via behind-the-scenes negotiations. With both parties holding fast positions in the face of continuous geopolitical uncertainty, talks are still tenuous.
Nigeria, in the meantime, is increasing output to around 1.84 million barrels per day in April 2026. Nonetheless, a domestic supply shortage exists as local refining requirements and export demand compete, especially from the Dangote refinery, which still relies somewhat on imports to meet its capacity, leading to challenges in meeting both local and international market needs.
With global supply shocks mounting, Nigeria faces a delicate balance between maximizing foreign exchange earnings and securing adequate domestic crude supply.
