The price of Nigeria’s Bonny Light crude oil rose to $67 per barrel, up from $65, following Israel’s surprise attack on targets in Qatar linked to Hamas.
Reports of the Israeli strike on the major oil and gas-producing nation sparked wild speculation in global markets, leading to a broad rise in oil prices. Similarly, the price of Brent crude, a key global benchmark, traded at $66.58 per barrel, an increase of over $1.0 from its pre-attack level.
Despite this jump, prices remain significantly below the $75 per barrel benchmark set in Nigeria’s 2025 budget. The national budget is based on an output of 2.06 million barrels per day and an exchange rate of N1,500/$.
The market’s gains are tempered by a recent decision from the OPEC+ alliance to ease its production cuts. The group announced it would return 137,000 barrels per day to the market in October 2025, a move that could push prices downward.
Mazi Colman Obasi, National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), stated: “Relaxing oil cuts at this time means increasing supply, which is expected to culminate in pumping additional supplies to the market, thus causing prices to drop below $60 per barrel.”
Another analyst noted that increasing global supplies could reduce prices, potentially impacting the implementation of Nigeria’s 2025 budget.
OPEC+ has stated that its production adjustment will be implemented in October, with the flexibility to pause or reverse the decision based on evolving market conditions.
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