Brent Crude Hits $107 As Petrol Prices Face Fresh Increase

Nigeria may face another petrol price increase as international crude oil prices surged to $107 per barrel on Thursday from about $100 the previous day, raising fresh concerns over the cost of refined petroleum products.

Domestic petrol prices have already risen sharply, climbing from about N830 per litre before the Middle East crisis to N1,310 or more in some locations.

Before the crisis began on February 28, international crude oil prices were below $69 per barrel. But disruptions to global oil supplies have since pushed prices higher, prompting the Dangote Petroleum Refinery and fuel importers to adjust their pricing.

Brent crude rose above $107 per barrel on Thursday, while US West Texas Intermediate also traded above $100, as the conflict between the United States and Iran disrupted tanker movements through the Strait of Hormuz.

According to Oilprice.com, Brent gained more than five per cent in early trading on Thursday, crossing the $100 mark earlier in the week as concerns over global supply intensified.

Oil flows through the Strait of Hormuz have also fallen sharply. The waterway previously handled between six million and nine million barrels of crude per day, but recent estimates put the volume below two million barrels per day.

Shipping trackers have reported that no very large crude carriers exited the strait since early September, while attacks on tankers and other commercial vessels in the Persian Gulf have added to uncertainty over global oil supplies.

Iran has claimed responsibility for strikes on several ships, while the United States has confirmed the destruction of some Iranian oil tankers.

With no imminent ceasefire in sight and the confrontation potentially lasting for weeks or longer, traders have been forced to reassess the risks to global crude supplies.

Physical crude benchmarks have moved above $100 per barrel, with futures also rising as inventories tighten and alternative supply routes face growing security risks.

For months, recovering tanker traffic had helped limit upward pressure on oil prices. But the latest disruption has changed the outlook, with prolonged restrictions around the Strait of Hormuz threatening to keep global crude prices elevated.

For Nigeria, a sustained increase in crude prices could put further pressure on domestic petrol prices as refiners and importers adjust their costs in response to higher global crude prices and supply disruptions.