Bonny Light Crude Oil Price Slides 14% In Nigeria

Nigeria’s Bonny Light crude oil price has plunged by 14.2 per cent, falling to $94.41 per barrel from $110 recorded earlier in the week, amid shifting dynamics in the global oil market. According to industry analysts, the decline followed a ceasefire announcement by former United States President Donald Trump, which sparked renewed optimism over stability in international oil supply.

The easing of tensions in key shipping routes, coupled with Iran’s assurance of safe passage for tankers through the Strait of Hormuz, contributed to the downward pressure on prices. These developments alleviated earlier concerns over potential supply disruptions that had pushed crude prices to elevated levels in recent weeks.

Global benchmarks mirrored the trend, with Brent crude slipping to around $94 per barrel from $100 per barrel. Market experts suggested that the mitigation of geopolitical risks could stabilize the market and moderate price volatility.

Additionally, the United States lifted sanctions on Iranian and Russian oil exports, a move viewed as an effort to normalize global oil flows and stabilize prices following earlier shipment disruptions. Data from the U.S. Energy Information Administration indicated that commercial crude inventories rose by 3.1 million barrels, reaching 464.7 million barrels—about two per cent above the five-year average for this period.

Olatide Jeremiah, Chief Executive Officer of PetroleumPrice.ng, told Vanguard that the drop in crude prices could lower refining costs worldwide. “If this trend continues, we can expect lower petroleum product prices, including petrol. This should provide relief to motorists and transporters currently burdened by high fuel costs,” he said.

Jeremiah, however, cautioned that Nigeria’s oil revenue could decline due to the lower crude price, though he suggested the impact would not be significant if budget benchmarks are maintained. Nigeria’s 2026 budget is based on a production benchmark of 1.84 million barrels per day, a crude price of $64.85 per barrel, and an exchange rate of ₦1,400 to the dollar.