Nigeria’s Bonny Light crude has surged to $80 per barrel from $70, its highest since July 2025, following U.S.-Israel military strikes on Iran that disrupted Middle East oil flows and rattled global energy markets.
Brent Crude climbed to $79.08 from $72.87 per barrel, Murban to $81.05 from $74.24, and U.S. West Texas Intermediate (WTI) to $72.24 from $62, as traders priced in risks to Iran’s 3 million barrels per day production mainly exported to China and Asia.
OPEC notes Iran holds vast hydrocarbon reserves plus natural gas and minerals like copper, iron ore, zinc, and sulphur, amplifying supply shock fears as hostilities escalated Sunday.
Budget Boost, Domestic Risks
At $80 per barrel, Bonny Light trades $15.15 above Nigeria’s 2026 budget benchmark of $64.85, based on 1.84 million barrels per day output and ₦1,400/$ exchange rate—potentially swelling revenues if production targets hold.
However, analysts warn prolonged Middle East instability could hike global petroleum prices, raising domestic pump costs in coming weeks.
OPEC+ Eases Cuts
Separately, OPEC+ on March 1 agreed to unwind 1.65 million bpd voluntary cuts from April 2023. Eight nations—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, Oman—will add 206,000 bpd from April 2026, citing stable economics and low inventories.
The alliance stressed gradual, flexible adjustments—reversible if markets shift—to balance supply.
