Oil prices eased on Wednesday, pulling back by about 1% for major benchmarks and underscoring how Middle East risk and policy signals continue to ripple into fuel costs in Nigeria.
Key takeaways
- Brent crude dropped 0.79% to $84.06 per barrel.
- WTI also fell 0.79%, settling at $78.71 per barrel.
- U.S. President Donald Trump said a strike against Iran would proceed.
- Nigeria’s downstream pricing is closely linked to international crude movements.
- Depot owners raised ex-depot fuel prices as volatility persisted.
- Retail prices in Nigeria stayed unchanged between N1155 and N1205 per liter.
Oil benchmarks slide as geopolitical risk stays in focus
Global benchmark crude fell during Wednesday trading, with both Brent and West Texas Intermediate recording losses close to 1%. Brent slipped by 0.79% to reach $84.06 per barrel, while WTI moved down by the same percentage to $78.71 per barrel.
The latest decline follows a period of frequent swings in the oil market, driven by elevated geopolitical tension in the Middle East. On Tuesday, U.S. President Donald Trump said that a strike against Iran would continue, a statement that has contributed to uncertainty in crude supply expectations and risk pricing.
Impact on Nigeria’s fuel pricing chain
In Nigeria, changes in crude prices tend to flow through to domestic fuel costs. As international benchmarks softened, Nigerian pricing at multiple levels moved in response.
One notable development is that the Dangote Refinery restarted the sale of gantry-processed petroleum products using dollar pricing, a significant shift for the country’s downstream sector. The move marks a departure from the prior approach and raises the sensitivity of local pricing to exchange-rate dynamics alongside crude trends.
Separately, depot operators on Tuesday increased ex-depot fuel prices in the context of ongoing volatility in the crude market. The Dangote Refinery’s gantry price was reported at N1075 per liter.
Despite the adjustments at the depot level, retail fuel prices were reported as flat for Wednesday, holding within a range of N1155 to N1205 per liter.
