Nigeria’s Bonny Light crude oil price has declined sharply by 14.2 percent, falling to $94.41 per barrel from $110 earlier in the week, following changes in global oil market conditions triggered by a ceasefire announcement by former U.S. President Donald Trump.
The drop comes amid renewed confidence in global oil supply stability, as tensions along key shipping routes begin to ease.
Further easing market concerns, Iran reassured the international community of safe passage for oil tankers through the Strait of Hormuz—one of the world’s most critical oil transit routes—reducing fears of supply disruptions that had previously driven prices higher.
Similarly, global benchmark Brent crude also fell, dropping to around $94 per barrel from about $100.
Industry players have expressed optimism that the reduction in geopolitical tensions will help stabilise the market and curb price volatility. Meanwhile, the United States reportedly lifted sanctions on Iranian and Russian oil exports as part of broader efforts to stabilise supply and prices.
In a related update, data from the U.S. Energy Information Administration showed a 3.1 million barrel increase in crude inventories, bringing total stockpiles to 464.7 million barrels—about two percent above the five-year average.
Speaking on the development, the CEO of PetroleumPrice.ng, Olatide Jeremiah, said the drop in crude prices could lower refining costs globally and eventually lead to reduced fuel prices.
He noted that if the trend continues, consumers may benefit from cheaper petrol and transportation costs. However, he cautioned that Nigeria’s oil revenue could decline due to the price dip, although the impact may remain manageable if budget benchmarks are maintained.
Nigeria’s 2026 budget is based on a production estimate of 1.84 million barrels per day, a benchmark crude price of $64.85 per barrel, and an exchange rate of ₦1,400 to the U.S. dollar.