Oil Prices Drop Below $80 Amid US-Iran Tension Hopes

Global oil prices continued to decline, with Nigeria's benchmark, Brent crude, falling to $78.75 per barrel, below the $80 threshold, as optimism grew regarding de-escalation of tensions between the United States and Iran. Brent crude decreased by 2 cents, or 0.03 percent, while the US benchmark, West Texas Intermediate (WTI), dropped 35 cents, or 0.46 percent, to $75.42 per barrel.

The decline followed a significant 5 percent drop earlier in the week, attributed to reports of diplomatic efforts to resolve hostilities between Washington and Tehran. Despite Iran denying peace negotiations, US President Donald Trump confirmed ongoing discussions with Iranian representatives.

Additionally, the Dangote Petroleum Refinery announced a reduction in the ex-depot price of petrol to N1,165 per litre from N1,215 per litre. The decline in oil prices was compounded by an unexpected increase in US crude inventories, which rose by 2.5 million barrels to 407 million barrels, contrary to expectations of a decrease.