Reported by Tahir Ishaq Shehu
Nigerian crude oil prices have surged past $72 per barrel, driven by heightened geopolitical tensions following a deadly Houthi attack in the Red Sea. The incident, which resulted in the deaths of four crew members aboard the Liberian-flagged vessel Eternity C, has raised fresh concerns over global oil supply disruptions.
Key Nigerian crude blends such as Bonny Light, Qua Iboe, and Brass River climbed to an average of $72.30 per barrel, outperforming global benchmarks. In contrast, Brent crude dipped to $69.91, and WTI futures fell to around $68, pressured by a surprise 7.1 million barrel increase in U.S. crude inventories.
Dangote Refinery Eyes Full Shift to Local Crude
In response to evolving market dynamics, Dangote Refinery has announced plans to switch entirely to Nigerian crude oil. The refinery is currently processing about 550,000 barrels per day, with 53% sourced locally. The aim is to eliminate imported crude and fully rely on domestic production in the near future.
This move aligns with Nigeria’s broader strategy to boost local refining capacity, reduce dependency on imports, and strengthen the Naira.
Petrol Prices Adjust Downward
The refinery has also reduced its ex-depot petrol price from ₦840 to ₦820 per liter to cushion local consumers. Distribution networks are being expanded through engagement with more fuel marketers to ensure adequate supply across the country.
Market Snapshot
Metric Value
Nigerian Crude (Bonny Light) $72.30 per barrel
Brent Crude $69.91 per barrel
WTI Crude ~$68 per barrel
Petrol Price (Dangote Depot) ₦820 per liter
Dangote Local Crude Share 53%
Outlook
The rise in Nigerian crude prices underlines the impact of geopolitical risks in key shipping lanes on global oil markets. Meanwhile, the shift to domestic crude sourcing by Dangote Refinery signals progress toward energy self-sufficiency and greater economic resilience for Nigeria.
