Nigerian Crude sells $4 higher than brent oil

The average price of Nigerian major oil blends on Tuesday was $68 per barrel, approximately $4 higher than the benchmark Brent Crude.

Brent crude opened the mid-week trading session at about $64 a barrel.

Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, remarked that the country’s economy is grappling with the ongoing volatility of the global oil markets.

He noted that Nigeria, heavily reliant on oil exports, would encounter serious economic consequences, while the Nigerian populace might benefit from decreasing prices for petroleum products.

“Although we, as consumers, appreciate the price drop, it is detrimental to our economy as our revenue inflows are also affected,” Ahmed stated.

A primary factor destabilising the market is the inconsistent messaging used by U.S. President Donald Trump to communicate his policies.

The underlying macroeconomic headwinds concerning forthcoming economic data could return markets to a more sobering reality.

The IEA indicated that global oil demand is projected to increase by 730,000 barrels per day this year, a notable reduction from the 1.103 million barrels per day it forecasted last month. The downward trend in oil prices continues, and initial optimism surrounding tariff rollbacks may diminish.

Local dynamics surrounding Nigeria’s energy infrastructure are hurting the country’s earnings. Recent attacks on oil infrastructure in Nigeria’s oil-rich southern delta region have been on the rise.

The Movement for the Emancipation of the Niger Delta and the lesser-known Liberation Army of the Niger Delta claimed responsibility for an attack on a major oil supply line leading to a terminal in Bayelsa State.

Oando Energy earlier suffered three separate attacks on its pipelines over the past week.

The militants argued that their actions were justified in response to President Bola Tinubu’s recent declaration of a state of emergency in the oil-rich state of Rivers.

Tinubu announced a state of emergency last month, suspending State Governor Siminalayi Fubara, his deputy Ngozi Odu, and elected state legislators amid months of political turmoil in the oil-rich state.

Global markets are currently uncertain due to Trump’s aggressive trade policies, which feature sweeping tariffs on goods from several countries, primarily China, alongside threats of tariffs on other nations. Crude oil prices have fluctuated because of these policies, which have often been announced or reversed abruptly, disrupting supply chains and investor confidence.

The oil market is susceptible to geopolitical tensions and shifts in demand as Trump’s tariffs and waivers influence economic forecasts. The energy market has also been unstable. Oil prices often dropped upon the implementation of tariffs due to fears of sluggish global growth, but they briefly increased when exemptions or rollbacks occurred.

The oil market is susceptible to geopolitical tensions and shifts in demand as Trump’s tariffs and waivers influence economic forecasts. The energy market has also been unstable. Oil prices often dropped upon the implementation of tariffs due to fears of sluggish global growth, but they briefly increased when exemptions or rollbacks occurred.

Oil-dependent economies like Nigeria depend on stable crude prices for revenue; such volatility complicates long-term planning. The head of the NMDPRA stated: “As everyone is aware, the world economy and oil market have been somewhat unstable recently due to the new American government’s tariff policy, which targets not only China but the world at large.”

UBS, BNP Paribas, and HSBC are among the banks that have adjusted their crude price projections downward due to the uncertainties surrounding trade tensions. In the escalating trade war between the world’s two largest economies, which is intensifying market fears of a global recession, Trump has increased tariffs on Chinese goods to crippling levels, prompting China to impose retaliatory tariffs on U.S. imports.

Nigeria’s recent addition of its medium-sweet crude grades, joining Forcados, Escravos, and Bonga, represents another significant step in the country’s ongoing efforts to diversify its crude offerings, according to Argus Media. Obodo, a new Nigerian crude grade, was launched in April and primarily targets the European market. European refineries are expected to be attracted to Obodo. Seasonal maintenance is projected to conclude by the end of next month, with European refineries preparing to increase operations.