• Super Admin
• 07 Mar, 2026

Bonny Light surges past $90 per barrel, boosting Nigeria's revenue outlook but raising fears of higher petrol prices and inflation at home.... The global crude oil market is edging closer to a critical turning point as prices surge amid escalating geopolitical tensions, with Nigeria's Bonny Light crude projected to approach the $100-per-barrel mark this month. Nigeria's flagship crude grade, Bonny Light, was last trading above $90 per barrel, marking a sharp rally of roughly one-third within the past week as global energy markets reacted to supply disruption fears. The surge could significantly improve Nigeria's fiscal outlook. The country's 2026 budget benchmark was pegged at $64.85 per barrel, meaning current prices are already far above government projections. While higher oil prices may boost government revenue, the development also carries significant domestic risks for Africa's largest economy. Rising Oil Prices, Rising Costs at Home Despite being one of Africa's biggest crude producers, Nigeria still imports large volumes of refined fuel. This means the country remains vulnerable to global price shocks even as crude revenues increase. The Dangote Petroleum Refinery, Africa's largest refinery, has already adjusted petrol prices in response to the volatility in global energy markets. Petrol prices at the refinery's gantry have climbed to ₦995 per litre, following multiple price increases within the week. In total, the refinery has raised prices by ₦221 in less than seven days, reflecting the pressure caused by rising global crude costs. The adjustments signal potential ripple effects across Nigeria's fuel market, where higher prices could fuel inflation and increased transportation costs for households and businesses. Global Oil Market on Edge The price rally has been driven largely by the escalating conflict involving Iran, which has triggered fears of disruptions to global oil supply. The crisis has particularly affected shipping through the Strait of Hormuz, a critical maritime route through which about 20 percent of the world's oil supply passes daily. Shipping activity through the strategic waterway has slowed dramatically, with Iran warning that it could target vessels attempting to cross the strait. The number of available oil supertankers operating in the Gulf has dropped significantly, and maritime traffic through the route has nearly ground to a halt. These disruptions have intensified pressure on global energy markets and forced some producers to scale back output. Energy Markets Showing Signs of Strain Beyond crude oil, the ripple effects are already being felt across broader energy markets. Prices for diesel and jet fuel have surged as refinery shutdowns in parts of the Middle East and Asia limit fuel production. Despite the sharp rally, oil prices still remain below the extreme levels seen during some previous energy crises. However, industry insiders say the current situation could deteriorate rapidly if the conflict continues. Many energy traders and executives warn that each day of continued hostilities pushes the market closer to a major supply shock. Iran Strikes Energy Infrastructure The crisis deepened after Iran reportedly launched missile attacks on energy facilities in United Arab Emirates, Saudi Arabia, and Qatar. Such attacks have further tightened fears over global oil supply and raised concerns about the stability of the Gulf's energy infrastructure. Major financial institutions including JPMorgan Chase and Goldman Sachs have warned that if the Strait of Hormuz remains blocked for several weeks, crude prices could climb above $100 and potentially reach $150 per barrel before the end of summer. Trump Moves to Calm Oil Markets Amid the volatility, U.S. President Donald Trump has attempted to reassure global markets and limit the surge in fuel costs. Gasoline prices in the United States have risen sharply, reaching their highest level during his presidency. The White House has made several attempts to calm markets as traders closely monitor when oil shipments from the Gulf might resume. The administration announced plans to provide naval escorts and insurance guarantees for oil tankers passing through the Strait of Hormuz in an effort to secure energy flows. The announcement came during the final day of the reporting period for market data compiled by the Commodity Futures Trading Commission and ICE Futures Europe, which showed that traders had reduced their bullish positions on West Texas Intermediate and Brent crude earlier in the week. Initially, many investors had expected the conflict to be short-lived, anticipating a brief price spike followed by a rapid decline. However, with tensions continuing to escalate and energy flows from the Gulf still uncertain, the global oil market now faces a far more unpredictable outlook. Source: https://www.tv360nigeria.com/oil-rally-pushes-nigerian-crude-toward-100-as-middle-east-tensions-shake-global-market/