Global oil prices extended their rally on Thursday, with Brent crude climbing close to $125 per barrel as mounting supply concerns tightened the international market. The latest surge has heightened fears of another round of fuel price increases across importing countries, including Nigeria.
As of the time of writing 06:13 am (WAT), Brent crude was trading at $124.90 per barrel, up 5.82 per cent, while US West Texas Intermediate rose 2.18 per cent to $109.20 per barrel. The sharp gains reflect growing anxiety over supply disruptions and a tightening balance between global demand and available crude.
The rally is being driven largely by renewed tensions in the Middle East, particularly around the Strait of Hormuz, a vital shipping route for global energy supplies. Tighter restrictions on Iranian crude exports have further strained supply, adding to concerns over the availability of prompt cargoes in the global market.
For Nigeria, the implications are immediate. Higher crude prices directly increase the cost of importing refined petroleum products, including petrol, diesel and aviation fuel. This puts fresh pressure on landing costs and sharply raises replacement costs for downstream marketers.
A fresh round of depot price hikes now appears unavoidable. Across the downstream market, marketers are already adjusting projections for Premium Motor Spirit, Automotive Gas Oil and Aviation Turbine Kerosene. From PMS to AGO and ATK, the impact is imminent and immediate, with upward price reviews expected across major depots soon if crude prices remain elevated.
The expected increase will likely reverberate across the domestic market, affecting pump prices, transport costs, airfares and broader inflation. Unless global supply concerns ease soon, Nigerian consumers and businesses should brace for renewed pressure across the petroleum value chain.