Oil Prices Pull Back After Surging to $100 Per Barrel Amid OPEC Supply Boost
Global oil prices pulled back yesterday after surging to $100 per barrel on Thursday due to Middle East supply risks and domestic pump price pressures in Nigeria.
Brent crude declined by three percent to $96 per barrel, while West Texas Intermediate (WTI) fell 2.58 percent to $89.81 per barrel.
The Organization of the Petroleum Exporting Countries (OPEC) pledged to increase supply after Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman were expected to raise their combined September production target by 188,000 barrels per day.
In Nigeria, petrol prices remain elevated due to volatility in global oil markets. The Dangote Refinery's gantry price for Premium Motor Spirit (PMS) now stands at N1,215 per liter, while Nigerians buy the product at between N1,200 and N1,300 per liter in Lagos and other major cities.
A former Chairman of the Major Energies Marketers Association of Nigeria (MEMAN), Mr. Tunji Oyebanji, attributed the price pressure to global market trends, stating that Nigerians are now exposed to global pricing after years of subsidy cover.
Oyebanji also urged targeted relief for Nigerians such as transport, health or education subsidy, alluding to the promise by the new UK Prime Minister to cap bus fares at two pounds.