NIGERIAN CRUDE TRADES AT $68 AMID IRAN-ISRAEL TENSIONS
Nigerian crude oil settled near $68 per barrel as global oil markets responded to escalating geopolitical tensions between Iran and Israel. Oil prices surged following intelligence reports suggesting Israel may be preparing for potential attacks on Iranian nuclear facilities.
Brent crude rose above $66 per barrel while West Texas Intermediate (WTI) surged as much as 5% before reversing some gains. Market analysts expect Nigerian crude to settle higher as global oil traders adopt an increasingly bullish outlook amid Middle Eastern uncertainties.
Oil markets have remained volatile since conflicting headlines emerged about Iran-U.S. nuclear negotiations. Any progress in those talks could result in additional barrels returning to a market already projected to be oversupplied later this year. However, an Israeli attack would likely stall negotiations and further destabilize the Middle East, which supplies approximately one-third of global crude oil.
Meanwhile, Nigeria faces production challenges with crude output falling short of projections. According to Nigerian Upstream Petroleum Regulatory Commission (NUPRC) data, Nigeria produced 200.08 million barrels in the first four months of 2025, representing an 18.7% deficit compared to the projected 247.2 million barrels.
The World Bank has warned that Nigeria’s 2025 budget relies on “overly ambitious revenue assumptions,” which could result in larger-than-expected fiscal deficits. These concerns are heightened by declining global oil prices and Nigeria’s heavy reliance on oil export revenues.
Source: nairametrics.com