Middle East Crisis Drives Brent Crude Past $109 Amid Nigeria Price Worries
Brent crude prices surged past $109 per barrel on Monday amidst escalating tensions in the Middle East, causing concern for Nigeria's downstream market. The rise comes after Gulf states cancelled talks with Iran over reopening the Strait of Hormuz and Yemen's Houthi fighters launched attacks on Saudi Arabia's King Khalid Airbase.
The heightened concerns over disruptions to global oil supplies through the strategic energy shipping route drove prices higher, according to Oilprice.com, which reported Brent crude trading above $109 and West Texas Intermediate at $104. This has renewed fears of further increases in Nigerian pump prices, already strained by repeated adjustments in ex-depot and gantry prices.
Dangote Refinery raised its gantry price from ₦1,265 to ₦1,350 per litre on Saturday, marking the fourth increase since August 21. This represents a nearly 16% increase in just three weeks, underscoring the strain on households and businesses.