Fresh Price Surge: NNPCL Increases Crude Oil Cost

The Nigerian National Petroleum Company Limited has increased the official selling prices of all 37 Nigerian crude oil grades for May-loading cargoes, a move driven by rising global oil prices amid escalating tensions in the Middle East.

According to industry sources, the state oil firm raised the price of Nigeria’s flagship Bonny Light crude by $6.13 per barrel compared to April, while Forcados crude recorded an even higher increase of $7.01 per barrel within the same period.

Market analysts noted that the upward adjustment aligns with a broader surge in global oil benchmarks, particularly Brent crude, which reportedly climbed above $110 per barrel due to fears that the ongoing tensions involving Iran and the United States could persist and disrupt supply routes.

Further reports indicate that uncertainty in the energy market has been heightened by speculation surrounding the Organization of the Petroleum Exporting Countries, following claims that the United Arab Emirates may be reconsidering its position within the group, raising concerns over potential shifts in regional oil alliances.

Financial data from the Central Bank of Nigeria showed that Bonny Light prices had already gained nearly $2 earlier in the week amid speculation over whether diplomatic negotiations between Iran and the United States could lead to the reopening of the Strait of Hormuz, a critical passage for global oil transportation. Prior to the escalation of the crisis on February 28, Bonny Light was trading at approximately $74 per barrel.

Experts believe the latest price adjustments by NNPCL could significantly boost Nigeria’s oil revenue, provided production levels and export volumes remain steady in the coming months.