By Atoyebi Nike
Nigeria’s flagship crude oil grades experienced a significant price surge over the weekend, crossing the $77 per barrel mark amid escalating military tensions between Israel and Iran, which have renewed global fears of a broader Middle East conflict.
According to market data from Oilprice.com, Bonny Light crude rose to $78.62 per barrel by late Sunday, while Brass River and Qua Iboe settled at $77.09 and $77.14 respectively. These figures represent a sharp spike from the sub-$65 average recorded just a few days prior.
This upward price movement puts Nigeria’s oil earnings in a more favorable position, as the current prices exceed the Federal Government’s 2025 budget benchmark of $75 per barrel. The surplus could offer temporary fiscal breathing room for the government amid ongoing economic pressures.
Despite the positive outlook for government revenue, energy economists caution that the spike in crude prices may have a downside for local consumers. With higher global crude costs, fuel importers and refiners are expected to face increased expenses, which could translate into higher prices for petrol and diesel in the domestic market.
Analysts attribute the rally to growing instability in the Middle East following Israel’s recent airstrikes on Iran, stoking fears of a prolonged conflict in a region that plays a critical role in global oil supply.
