Nigeria’s Bonny Light Crude Hits $70 Amid Global Oil Market Uncertainty
By Naija Enquirer Staff
Nigeria’s Bonny Light crude climbed to $70 per barrel on Tuesday, up from $68, after a surprise drop in U.S. inventories tightened global supply. The surge comes as the International Energy Agency (IEA) projects rising oil supply through 2025, with potential surpluses in 2026, even as demand growth slows.
Global Market Braces for Elevated Supply
The global oil market is adjusting to elevated supply levels amid geopolitical uncertainty. Rising tensions from the Russia-Ukraine conflict and persistent unrest in the Middle East continue to disrupt regional markets.
Despite expectations of surplus, oil prices climbed about 1% to a three-week high on Wednesday. Brent futures rose 94 cents, or 1.4%, to $68.57 a barrel, while U.S. West Texas Intermediate (WTI) gained 97 cents, or 1.5%, to $64.38. Both benchmarks reached their highest levels since early September.
U.S. Inventory Drop Tightens Supply
According to the Energy Information Administration (EIA), U.S. crude inventories fell by 607,000 barrels last week, compared with analysts’ forecasts of a 235,000-barrel build. This unexpected drawdown pushed prices higher.
“The report is somewhat supportive given the draws across the board here,” said John Kilduff, partner at Again Capital, referencing crude, distillate, and gasoline declines.
Geopolitical Tensions Add Support
Oil prices also found support as Ukraine’s military struck two oil pumping stations in Russia’s Volgograd region, triggering a state of emergency in Novorossiisk—home to major oil and grain export terminals. Analysts noted that the risk of further sanctions on Russia added short-term bullishness.
Ongoing issues with Kurdish oil exports, coupled with Chevron’s curbed shipments from Venezuela due to U.S. permit challenges, further tightened the market outlook.
Nigeria’s Resilient Crude Performance
In early September, Nigerian crude grades demonstrated resilience despite global volatility. Both Bonny Light and Brass River settled at $71.4 per barrel at mid-week trading, outperforming Brent, which slipped 1% to $67, and WTI, which dropped to $63.4.
Market watchers told Naija Enquirer that Nigeria’s crude remains attractive due to its quality and competitive pricing, positioning it as a steady performer in turbulent global markets.