The price of Nigeria’s Bonny Light crude oil rose to $76.60 per barrel on Wednesday, up from $73 per barrel, as tensions between Israel and Iran continued to impact global oil markets. The increase followed reports of damage to facilities at Iran’s Pilot Fuel Enrichment Plant, raising concerns over potential disruptions to oil and gas supplies.
Other major crude oil benchmarks also saw price increases, with Brent crude climbing to $76.59 per barrel, Murban to $76.75, and Louisiana Light to $76.60, up from $73, $74, and $72 per barrel, respectively. Analysts warned that prices could surge toward $100 per barrel if the conflict escalates, given Iran’s role as a major oil producer and member of the Organisation of Petroleum Exporting Countries.
The price surge could benefit Nigeria’s 2025 budget implementation, which is based on a benchmark oil price of $75 per barrel, a production target of 2.06 million barrels per day, and an exchange rate of N1,500 to the dollar.
Meanwhile, OPEC reported that Nigeria’s crude oil production, excluding condensate, rose marginally to 1.544 million bpd in May 2025, up 1.44% from 1.522 million bpd in April. The data, sourced from secondary sources, was included in OPEC’s June 2025 Monthly Oil Market Report.
Commenting on the potential economic impact of the Middle East crisis, Dr. Muda Yusuf, Director and CEO of the Centre for the Promotion of Private Enterprise, stated: “The spikes will likely lead to higher prices for petroleum products such as petrol, diesel, jet fuel, and gas globally, with significant consequences for households, businesses, and national inflation. Higher energy prices affect production, logistics, transportation, and power generation. These increased costs will eventually be passed on to consumers, depending on the elasticity of demand. Global energy price hikes have inflationary consequences worldwide. Therefore, Nigeria could experience additional inflationary pressures from this external shock.”
Similarly, Mr. Tunji Oyebanji, Managing Director of 11Plc, noted: “The conflict is volatile, and the global market would continue to react to it.” The uncertainty in the Middle East remains a key factor influencing oil price movements, with potential implications for Nigeria’s economy and global energy markets.
