- Nigeria’s Bonny Light crude price plunged by 14.2%, dropping from $110 to $94.41 per barrel
- The decline followed a two-week ceasefire announcement by US President Donald Trump
- Iran reassured global markets by pledging safe oil tanker passage through the Strait of Hormuz
Global oil prices took a sharp downturn on Wednesday, with Nigeria’s Bonny Light crude falling by 14.2 per cent to $94.41 per barrel, down from $110 recorded on Tuesday, April 7.
The drop comes in the wake of a two-week ceasefire announcement by Donald Trump, which has helped ease geopolitical tensions in the Middle East.
Tensions around the Strait of Hormuz had previously driven prices higher due to fears of supply disruptions.
However, Iran has now signalled its commitment to ensuring the safe passage of oil tankers through the vital corridor, calming market concerns.
Similarly, Brent crude prices declined to about $94 per barrel from $100, as traders and marketers expressed renewed optimism about stability in the global oil market.
In a related development, the United States has reportedly lifted sanctions on Iranian and Russian oil exports.
The move is believed to be a response to earlier price spikes caused by prolonged disruptions in shipments through the Strait of Hormuz.
Meanwhile, fresh data from the U.S. Energy Information Administration showed a rise in crude oil inventories by 3.1 million barrels. This brings total commercial stockpiles to 464.7 million barrels, approximately two per cent above the five-year average for this period.
Reacting to the development, the Chief Executive Officer of PetroleumPrice.ng, Olatide Jeremiah, said the price drop could bring relief across the energy sector.
“The drop in crude oil prices will reduce the cost of operations for refiners worldwide. If this trend persists, we should expect lower prices of petroleum products, including Premium Motor Spirit (PMS), also known as petrol. Motorists and transporters currently burdened by high fuel costs and transport fares will also experience relief,” he said.
However, he cautioned that Nigeria’s earnings could take a hit due to the price decline, although he downplayed its severity.
“Government revenue will also drop because of the relatively low crude oil price. However, this should not pose a significant challenge as long as budget benchmarks are met,” he added.
Nigeria’s 2026 budget is benchmarked at 1.84 million barrels per day, $64.85 per barrel, and an exchange rate of N1,400 to the US dollar.
Crude oil jumps to $108 as Iran rejects US peace plan, deepening global crisis
Meanwhile, TheRadar earlier reported that the global oil prices surged again on Thursday, March 26, climbing to $108.3 per barrel, as tensions deepened between the United States and Iran following Tehran’s rejection of Washington’s proposed 15-point peace plan.
The spike, representing a 5.98 percent increase, reflected growing uncertainty in the international energy market as diplomatic efforts to end the ongoing US-Israel war with Iran continue to stall.