Nigerian Crude Oil Prices Surge Amid Geopolitical Tensions

In March, Nigerian crude oil experienced its best monthly increase of 58%, approaching $120 per barrel early in the month. Bonny Light, a key Nigerian crude grade, traded at $70 per barrel at the start of March and reached its highest level since June 2022, peaking at $119.5 per barrel.

This surge is attributed to geopolitical risks, particularly disruptions in the Strait of Hormuz, which have created a significant premium for Nigerian crude in European markets. The premium for Bonny Light over Brent reached between $112 and $122 per barrel.

Despite this, Nigeria is struggling to meet its ambitious 2026 budget target of 1.84 million barrels per day, currently producing between 1.46 and 1.48 million barrels daily, falling short by 16.6 million barrels compared to budget projections. Domestic petrol prices in Abuja have also been affected, ranging from N1,331 to N1,430 per liter.

The article also mentions U.S. President Donald Trump's comments regarding military actions in the region, which could impact global oil trade.