Global oil benchmarks experience slight dip, with Brent crude slipping 0.30% to $65.85 per barrel, dropping below the $66 threshold as traders digested weaker downstream signals. WTI crude gained 0.45% to $63.08, while Murban crude edged up 0.44% to $68.58. In contrast, natural gas fell sharply by 2.50% to $2.843/MMBtu, reflecting broader volatility in the energy complex.
Depot Prices Mirror Market Weakness
In Nigeria’s downstream market, Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) depot prices softened, aligning with Brent’s marginal retreat. As of Friday, selected Lagos depots posted notable declines:
PMS:
- Menj closed at ₦822/L
- A.A Rano settled at ₦821/L
- MAO closed at ₦822/L
- Aiteo recorded ₦822/L
AGO:
- CHIPET closed at ₦986
- IBACHEM closed at ₦986
- IBETO settled at ₦986
- TMDK recorded ₦986
These modest reductions, though not steep, reflect a cautious market adjusting to product inflows and competitive pricing among private depots.
Market Insight
Analysts say the alignment between Brent’s pullback and Nigeria’s depot prices underscores the tight correlation between global benchmarks and local supply economics. With more vessels discharging in Apapa this week, downstream traders anticipate further easing in PMS prices if Brent remains under $66. However, there is oversupply is AGO (desiel) currently, disruptions from geopolitical risks could quickly reverse the trend.
Outlook
Going into next week, Brent crude is expected to hover in the $65–$67 range, with downstream depots likely to mirror subtle fluctuations. Any renewed volatility in natural gas or disruptions in tanker arrivals at Nigerian ports could tilt market sentiment.
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