Bonny Light, Nigeria’s key export grade, fell below $69 a barrel during the second trading session of the week.
The latest quote shows Nigerian top-grade oil traded at $68.8 a barrel.
Oil prices edged lower on Tuesday as traders evaluated potential supply disruptions after US guidance urged vessels passing through the Strait of Hormuz to focus on tensions between Washington and Tehran.
Bonny Light Crude Oil is a premium light, sweet crude benchmark in global markets and one of Nigeria’s leading grades. Its high refining value often causes it to trade at a premium compared to heavier or sourer crudes. Brent crude futures dipped 18 cents to $68.85 a barrel, while US West Texas Intermediate crude fell to $64.15 in the second trading session of the week.
Vessels flying the flag are instructed to avoid entering Iranian territorial waters and to politely decline Iranian forces’ requests to board.
Any escalation there threatens global oil supplies Since the Strait of Hormuz, located between Oman and Iran, accounts for about 5% of the world’s oil consumption.
Iran and other OPEC members like Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq—export most of their crude through the Strait, mainly to Asia.
Nigeria, Libya weigh negatively on OPEC output in January
Reduced output from Nigeria and Libya contributed significantly to OPEC’s overall output decrease to 28–34 million barrels per day (bpd), down 60,000 bpd from December.
- A Reuters survey conducted on February 9, 2026, indicated Nigeria experienced the largest decline among members.
- This decline contributed to the overall reduction despite gains elsewhere in the cartel. President Tinubu has reiterated his ambitions to reach 3 million barrels per day by 2030, with interim targets of 2.5 million barrels per day by 2027.
- Recently, the Nigerian federal government approved 28 new oil field projects totaling $18.2 billion.
Major projects like Shell’s Bonga South West, with discussions about $20 billion in investments, which could produce 150,000 barrels per day, are moving forward. NNPC and others are promoting refinery reopenings and gas monetization reforms.
Rising production costs—roughly 40% higher than in comparable regions—threaten the competitiveness of local producers.
Recent estimates show exports fell about 14% due to weaker loadings despite prices staying around $70 per barrel amid global concerns.
EU goes tough on Russian Oil
The European Union is imposing even stricter sanctions on Russian oil, attempting to restrict the ports of Kulevi, Georgia, and Karimun, Indonesia—two third-country ports that have aided Russia’s oil exports despite existing restrictions.
- These measures could limit global oil supply and Russia’s options. Sanctions include prohibitions against major Russian refineries like Rosneft and Bashneft, signaling growing pressure even if not directly targeting Rosneft.
- Completely banning maritime services could disrupt Russia’s oil exports, potentially causing a supply shock. Traders might begin setting prices accordingly.
- The EU is also implementing broader controls on technology exports and metals imports for countries like Kyrgyzstan, aiming to close loopholes and avoid penalties.
- These measures could further cut Russian revenue and impact Asian oil trade routes if successful.
Such developments may push oil prices higher, with markets closely monitoring the implementation of these policies and possible Russian retaliation.
Geopolitical tensions appear to be increasing as supply concerns grow. Oil prices remain within a range due to geopolitical pressure.
Price increases and supply disruptions could occur if the EU’s proposed sanctions target Russian refineries and third-party ports. However, WTI crude remains between $61 and $66, indicating consolidation. Traders expect a breakout—above $66 could lead to a rally toward $70, while dropping below $61 might push prices lower.
