Nigeria’s Crude Oil Grades Sell Above $93 Per Barrel As Middle East Crisis Worsens

Nigeria is expected to generate more revenue from crude oil as geopolitical tension between Russia and Ukraine, and Israel/Hamas have elevated the prices of its crude oil grades above $93 per barrel, an amount higher than its 2024 budget benchmark price.

The new price rise happened as Iran’s Revolutionary Guards launched “dozens of drones and missiles” at Israel in retaliation for an attack on its consulate in Syria on 1 April which killed seven military officers, including a top commander.

The attack has heightened the tension in the Middle East which has been in crisis since Hamas attacked Israel last year while Europe is battling with the Russia/Ukraine War.

Checks on crude oil prices show that the three major grades Brass River, Qua Iboe and Bonny Light were all trading above Brent Crude and the West Texas Intermediate.

Brass River sells for $93.89, Qua Iboe, $93.89 while Bonny Light is priced at $93.54 per barrel.

Benchmark crude, Brent Crude gained 0.71 per cent to sell at $90.45 per barrel while WTI Crude gained 0.64 per cent to trade $85.66 per barrel.

The prices for Nigerian crude oil grades are trading around $15.9 per barrel above the crude oil price benchmark of $77.96 bpd set in the 2024 budget by the government.

The development comes amidst the improvement in crude production for Africa’s most populous economy. According to the Nigerian National Petroleum Company Ltd, crude oil production is around 1.45 million barrels per day.

The country is expected to meet its 1.7 million bpd production benchmark for the 2024 budget of N27.5tn as crude oil theft and vandalism are being tamed by the NNPCL and its security partners.