Nigeria faces fresh pressure on petrol prices as international crude oil climbed to $107 per barrel on Thursday, extending a sharp rally triggered by the ongoing US-Iran conflict and disruptions to oil shipments through the Strait of Hormuz…..
Brent crude, which stood at around $100 per barrel a day earlier, gained more than five per cent in early trading to cross the $107 mark, while West Texas Intermediate also rose above $100.
The development could further raise the cost of petrol in Nigeria, where pump prices have already jumped from about ₦830 per litre before the Middle East crisis to ₦1,310 or more in some locations.
Before the crisis erupted on February 28, international crude was trading below $69 per barrel. But disruptions to global oil supplies since then have sent prices sharply higher, forcing the Dangote Petroleum Refinery and fuel importers to review their pricing.
According to Oilprice.com, the latest surge was largely linked to declining oil flows through the Strait of Hormuz, a critical route for global energy supplies.
Oil movements through the strait, which had recovered to between six million and nine million barrels per day in previous weeks, have reportedly dropped significantly, with recent estimates placing daily outflows below two million barrels.
The disruption has been compounded by declining tanker traffic. Shipping trackers reportedly showed that no very large crude carriers had left the Strait of Hormuz since early September, highlighting the extent to which the conflict has affected maritime oil transportation.
The situation has heightened fears of a prolonged supply squeeze, particularly as attacks on tankers and commercial vessels in the Persian Gulf and surrounding waters continue.
Iran has claimed responsibility for strikes on several ships, while the United States has confirmed the destruction of some Iranian oil tankers.
Neither side has indicated that a ceasefire is imminent, raising concerns that the confrontation could persist for weeks or potentially longer.
Market analysts say the lack of a clear route towards de-escalation has forced traders to reassess the risks facing global crude supplies.
Physical crude benchmarks had already crossed the $100 threshold in recent sessions, while futures prices followed as inventories tightened and alternative export routes came under greater threat.
For months, the recovery in tanker movements through the Strait of Hormuz had helped ease concerns over supply disruptions and kept further gains in crude prices in check.
That situation has now changed, with sharply reduced oil flows and continuing military tensions increasing the possibility of prolonged disruption along one of the world’s most important energy corridors.
For Nigeria, a sustained rise in international crude prices could translate into further pressure on petrol prices as domestic refiners and fuel importers adjust their costs in line with global crude prices and related supply expenses.
With Brent now trading above $107 per barrel and the conflict showing few signs of an immediate resolution, another increase in petrol prices remains a growing possibility for Nigerian consumers.
