Oil Price Drops 6% To $98 As Petrol Remain High

Global oil prices recorded a sharp decline of about six per cent on Wednesday amid reports of a possible diplomatic breakthrough between the United States and Iran, raising cautious optimism in the international energy market.

Brent crude, the global benchmark for oil pricing, fell by 5.92 per cent to settle at $98.30 per barrel. Similarly, the United States benchmark, West Texas Intermediate (WTI), dropped by 5.01 per cent to $87.72 per barrel.

The decline follows indications that US President Donald Trump has initiated a peace proposal aimed at easing tensions in the Middle East.

The proposed deal was forwarded to Iran as part of efforts to de-escalate the ongoing conflict involving Israel and Iran.

Further details revealed that the proposal contains a 15-point framework designed to resolve critical issues fueling the crisis.

The conflict, now entering its fourth week, has significantly disrupted global oil supply expectations and heightened volatility in energy markets.

Analysts note that any signs of de-escalation typically lead to a drop in oil prices, as fears of supply shortages begin to ease.

Despite the drop in global crude prices, the situation in Nigeria remains largely unchanged, with consumers still grappling with high fuel costs.

A litre of Premium Motor Spirit (PMS), commonly known as petrol, continues to sell for about ₦1,400 across many parts of the country.

The persistent high cost of petrol, despite falling global oil prices, highlights structural challenges within Nigeria’s downstream petroleum sector, including exchange rate pressures, distribution costs, and market deregulation dynamics.

The changes in international crude prices do not immediately translate to relief at the pump due to underlying factors.

For many Nigerians, the disconnect between falling crude prices and rising domestic fuel costs continues to deepen economic strain, affecting transportation, food prices, and overall cost of living.