Bonny Light, Qua Iboe and Forcados hold firm above $90 per barrel as renewed Middle East conflict fuels supply concerns and boosts demand for Atlantic crude…..
Nigerian crude grades strengthened alongside global benchmark oil prices after escalating military tensions between the United States and Iran heightened fears of supply disruptions in the Middle East.
Brent crude surged by nearly three per cent to its highest level in 10 days, climbing above $90 per barrel as fresh attacks around the Strait of Hormuz renewed concerns over the security of one of the world’s busiest oil shipping routes.
Nigeria’s premium light sweet crude blends including Bonny Light, Qua Iboe and Forcados also remained firmly above the $90-per-barrel mark, with prices hovering around $93 per barrel as buyers sought alternatives to Middle Eastern supplies.
Market participants say Nigerian crude continues to command a strong premium in the Atlantic Basin because it offers refiners a lower-risk supply route at a time when shipping through the Gulf region has become increasingly uncertain.
Reports indicate that vessel movements through the Strait of Hormuz slowed significantly on Monday after days of heightened military exchanges between Washington and Tehran. Some ships reportedly attempted to navigate the strategic waterway with their tracking systems switched off, while others relied on military escorts because of growing security concerns.
The latest escalation follows another round of retaliatory strikes between the United States and Iran. The U.S. Central Command announced that its forces had carried out a ninth consecutive night of attacks targeting Iranian command centres, maritime facilities and missile and drone infrastructure.
According to U.S. officials, the operations were aimed at reducing Iran’s capacity to launch attacks against commercial vessels operating in the Strait of Hormuz, a critical corridor through which a substantial share of the world’s crude oil exports passes.
U.S. Secretary of State Marco Rubio said Washington believes divisions are emerging within Iran’s leadership, with some factions favouring renewed negotiations while others continue to pursue confrontation.
He maintained that the United States would continue responding to threats against commercial shipping as long as Iran attempts to disrupt navigation through the international waterway.
The conflict has also affected neighbouring countries. Kuwait Petroleum Corporation reported significant damage at one of its oil facilities following retaliatory attacks, while two water and electricity plants in the country were also reportedly hit.
Nigerian crude benefits from shifting market dynamics
The renewed instability in the Middle East has further strengthened demand for Nigerian crude, with European refiners increasingly turning to Atlantic Basin supplies to avoid the risks associated with shipments passing through the Strait of Hormuz.
Industry analysts note that Nigeria’s export grades have become particularly attractive because they can be shipped directly across the Atlantic without relying on the increasingly volatile Gulf route.
At the same time, Nigeria’s crude production has continued to improve.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) show that crude oil output averaged 1.56 million barrels per day, the country’s highest production level since April 2020.
Including condensates, total liquids production reached approximately 1.735 million barrels per day, extending four consecutive months of output growth.
Among export terminals, Bonny remained Nigeria’s largest producer with roughly 318,000 barrels per day, followed closely by Forcados, which averaged about 306,000 barrels daily.
The increase in production has largely been attributed to improved pipeline security and greater infrastructure stability, allowing previously constrained oil fields to resume production.
Domestic demand has also risen sharply following the expansion of the Dangote Petroleum Refinery, which has significantly altered Nigeria’s crude market.
Within just two months, the refinery lifted an estimated 40.4 million barrels of Nigerian crude, sourcing grades such as Bonny Light, Forcados and Bonga to meet its refining needs.
The refinery’s growing appetite for domestic crude has created a stronger local market for Nigerian oil even as international buyers continue to compete for Atlantic cargoes, giving producers greater pricing support amid elevated global demand.
