US-Iran crisis pushes oil to $87, Nigeria gains $22/barrel
By Udeme Akpan
Oil prices have surged by 5 percent amid escalating tensions between President Donald Trump and Iran concerning the Strait of Hormuz’s reopening. Prices rose from $83 to $87 per barrel in global markets.
Bank of America (BofA) issued a warning that oil prices could continue to climb as winter approaches, particularly if an agreement between the two parties remains elusive. Francisco Blanch, the bank’s head of commodities and derivatives research, emphasized the risk, stating, “If we don’t, we’re going to keep creeping higher into the winter.”
Currently, the flow of maritime traffic through the Strait of Hormuz is limited, with only a few ships passing compared to approximately 140 in the past. The benchmark price for Brent crude, which influences various other grades, including Nigeria’s Bonny Light and the OPEC Basket, has also increased to $87 per barrel.
With the current pricing, Nigeria is experiencing an excess revenue of $22.15 per barrel. The 2026 national budget was predicated on an oil price of $64.85 per barrel, with anticipated production of 1.84 million barrels per day, and an exchange rate of N1,400 to the dollar.
Despite these global market shifts, domestic prices in Nigeria have yet to reflect such developments. On Monday, the prices for Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), or diesel, exhibited mixed trends across Nigeria’s major petroleum markets.
A recent report indicated that petrol prices in Lagos largely remained stable, with some depots showing minor reductions. At African Terminal, the price for petrol fell by N4 per litre to N1,165, down from N1,169. Aiteo similarly reduced its depot price to N1,165 from N1,168, while NIPCO lowered its price by N2 to N1,166.
Conversely, retailers such as GulfTreasure and Duport sold petrol at N1,550 per litre, while Rain Oil reached N1,580.
These price fluctuations underscore ongoing volatility in Nigeria’s downstream petroleum market, with depot prices varying based on location, supply conditions, and individual pricing strategies. For motorists and consumers, these developments indicate that pump prices may remain volatile, particularly in regions where depot prices are rising.
