Oil Prices Drop Below $97 Amid Gulf Supply Recovery

On October 1, oil prices fell below $97 a barrel as recovering shipments from the Gulf alleviated supply concerns following a significant price rally in September. Brent crude futures decreased by 1.1% to $96.92, while US West Texas Intermediate dropped 1.4% to $89.18 by 5:20 am Nigerian time, according to Reuters.

For Nigeria, a sustained decline in oil prices could have dual effects: refineries might benefit from lower crude-purchase costs, potentially leading to cheaper fuel, while oil exporters would receive reduced revenue per barrel, assuming other pricing conditions remain constant. It is important to note that the recent decline does not confirm a decrease in Nigerian petrol prices.

The drop in prices coincided with Saudi Arabia resuming tanker loading at its Red Sea port of Yanbu on September 29 after restarting its East-West Pipeline. Goldman Sachs reported that Gulf oil exports had recovered to an average of 23.3 million barrels daily over the previous week, aligning with their 2025 average.