Nigerian Crude Oil Prices Set to Exceed $100 per Barrel

The global crude oil market is approaching a tipping point, with Nigerian Bonny Light crude oil trading above $90 per barrel for the third week. The federal government's revenue is expected to rise sharply, with the 2026 budget set at a lower price of $64.85 per barrel.

However, Nigeria still imports refined fuel, despite an uptick in production from Dangote Petroleum Refinery, which has implemented significant price increases. The price of petrol has risen to N995 per liter, reflecting volatility in the global oil market.

The conflict in Iran, particularly threats to the Strait of Hormuz, has escalated tensions, with JPMorgan and Goldman Sachs forecasting prices could exceed $100, potentially reaching $150 by the end of summer. Former White House official Bob McNally noted that the market is adjusting to the potential closure of the Strait, while Donald Trump previously claimed that such conflicts influence fuel prices.