Global oil prices fell sharply following a ceasefire agreement involving the United States and Iran, easing tensions that had disrupted supply routes. Nigeria’s Bonny Light crude dropped by 14.2 per cent to $94.41 per barrel, down from $110 earlier in the week, reflecting improved market confidence.
The decline followed a ceasefire announcement by Donald Trump, alongside assurances from Iran that oil tankers would be allowed safe passage through the strategic Strait of Hormuz. The development reduced fears of supply shortages that had previously pushed prices higher.
Benchmark Brent crude also recorded a drop, falling to around $94 per barrel from about $100, as traders responded positively to signs of stability in the global oil market. Additional pressure on prices came from rising inventories in the United States. According to the U.S. Energy Information Administration, crude stockpiles increased by 3.1 million barrels, bringing total reserves to 464.7 million barrels, slightly above the five-year average.
Market analysts say the price decline could reduce refining costs globally and potentially lead to lower fuel prices. This may provide relief for consumers facing high transportation and energy costs.
However, the development carries mixed implications for Nigeria. While lower crude prices could ease fuel costs, government revenue may decline given the country’s reliance on oil exports. Still, analysts note that the impact may remain manageable if production levels and budget benchmarks are maintained.
Nigeria’s 2026 budget is based on an oil price benchmark of $64.85 per barrel and daily production of 1.84 million barrels, suggesting that current prices remain above projections despite the recent drop.
