Global crude oil prices slipped on Friday after jumping to levels above $100 a barrel the previous day, as Middle East tensions intensified and traders weighed tighter supply risks against the prospect of additional output. The pullback underscored how quickly sentiment can shift in oil markets when geopolitical threats alter expectations for shipping and production.
Price checks on Friday showed Brent crude down about 3% to $96 per barrel. West Texas Intermediate (WTI) fell roughly 2.58% to $89.81 per barrel. The decline followed a sharp rise on Thursday, when Brent and WTI climbed to $100.67 and $92.19 per barrel, respectively, before easing the next day.
The recent swings were linked to a supply disruption tied to attacks by Houthi militants on oil tankers associated with Saudi interests. That development raised worries about the safety of key maritime routes used to move crude and refined products, feeding fears that delivery schedules could tighten further even without confirmed long-term production losses.
OPEC output pledge and renewed geopolitical risk
- Oil prices reacted to the worsening security situation in the Middle East, which traders viewed as a potential threat to global supply flows.
- Market pressure eased slightly on Friday as Brent and WTI retreated from Thursday’s highs.
- Support for prices also appeared in the background as OPEC signaled it would increase crude supply, aiming to counterbalance some disruption concerns.
- OPEC’s plan, as reported by Reuters, points to Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman lifting their combined September production target by 188,000 barrels per day.
- At the same time, the U.S. president vowed a “massive attack” on Iran, a statement that could revive risk premiums and push oil higher if markets interpret it as likely to escalate further.
In Nigeria, the ripple effects of the broader Iran-related conflict are also being reflected in local fuel costs. The ongoing Iran-U.S.-Israel confrontation, which began on February 28, has continued to influence energy pricing globally, including prices for domestic oil and gas.
Recent market moves in Nigeria show pressure on retail supply prices. Dangote Refinery, petroleum marketers, and depot operators have raised fuel prices. While Dangote Refinery’s gantry price for petrol is set at N1,215 per litre, consumers in Abuja and surrounding areas are reported to be paying roughly between N1,300 and N1,340 per litre.
