Nigeria’s Bonny Light crude oil price tumbled 14.2%, sliding to $94.41 per barrel from $110 earlier this week, as global oil market tensions eased following geopolitical developments.
The decline came after former U.S. President Donald Trump announced a ceasefire, boosting optimism about stability in key oil supply routes. Iran also confirmed safe passage for tankers through the Strait of Hormuz, further easing fears of supply disruptions that had previously driven prices higher.
Brent crude, the global benchmark, also dipped, falling to about $94 per barrel from $100, reflecting the broader market adjustment.
Oil analysts welcomed the calmer market conditions, predicting that reduced volatility could benefit consumers worldwide. The U.S. reportedly lifted sanctions on Iranian and Russian oil exports, while fresh data from the U.S. Energy Information Administration showed crude inventories rose by 3.1 million barrels to 464.7 million barrels, roughly two percent above the five-year average.
Olatide Jeremiah, CEO of PetroleumPrice.ng, said the lower crude price could reduce refining costs and eventually lead to cheaper petrol, easing the burden on motorists and transporters. However, he noted that Nigeria’s oil revenue might dip due to the price drop, although the effect is expected to be manageable if budget benchmarks are maintained.
Nigeria’s 2026 budget is based on 1.84 million barrels per day, a crude price of $64.85 per barrel, and an exchange rate of ₦1,400 to the dollar.
