Global oil prices fell sharply on Monday, with West Texas Intermediate (WTI) crude declining 4.87 percent and Brent crude falling 3.47 percent, bringing Brent back around the $100 per barrel mark, while Nigerian depot prices remained largely unchanged.
As of 4:00 p.m. West Africa Time, WTI crude stood at $95.42 per barrel, down $4.88 or 4.87 percent, while Brent crude traded at $100.30, representing a decline of $3.60 or 3.47 percent.
The decline came as the market assessed expectations of possible diplomatic movement between the United States and Iran during this week’s United Nations General Assembly, alongside indications that Saudi Arabia is restoring part of its disrupted crude export flows. Reuters reported that both Brent and WTI had earlier fallen to their lowest levels since September 10.
The softer international benchmark prices, however, have yet to produce a broad reduction across Nigerian petroleum depots, with several PMS and AGO prices reviewed on Monday remaining around existing market levels.
In Warri, PMS was quoted at ₦1,327 per litre at Matrix, while Optima, Keonamex and Sharon were at ₦1,330. Prudent’s PMS price was reviewed from ₦1,335 to ₦1,330 per litre.
Calabar recorded PMS prices between ₦1,327 and ₦1,330 per litre. Northwest was listed at ₦1,327, while Soroman was at ₦1,330. Alkanes, Mainland and Sobaz were also reviewed to ₦1,327 per litre.
In Port Harcourt, Masters and TSL quoted PMS at ₦1,330 per litre, while AGO was priced at ₦1,935 at Masters and ₦1,928 at Bulk Strategic.
Lagos depot prices also showed limited movement. Techno Oil listed PMS at ₦1,350.30 per litre, while AGO prices ranged from ₦1,830 to ₦1,850.50 across the depots monitored.
Dangote-linked marketer’s AGO was quoted at ₦1,850.50 per litre. Integrated, Duport, Ibachem and Ibeto were initially listed at ₦1,850 before subsequent reviews put Integrated and Bono at ₦1,840, while Duport, Ibachem, Ibeto and T.Time were listed at ₦1,830. Ascon was also quoted at ₦1,830.
Ibeto’s AGO price was separately reviewed to ₦1,840 per litre.
The relatively stable depot market comes despite the sharp decline in international crude prices, reflecting the time lag between movements in crude benchmarks and changes in the cost of petroleum products available to local buyers.
The international market has also been influenced by developments in Saudi Arabia, where crude exports are recovering after attacks disrupted the kingdom’s East-West pipeline and affected shipments through Yanbu.
JPMorgan said Middle East oil flows remained stronger than expected despite the pipeline disruption. Satellite data cited by the bank showed Saudi crude moving through the Strait of Hormuz at an average rate of about 2.9 million barrels per day over six days, significantly above the roughly 700,000 barrels per day recorded in August.
Saudi Arabia’s increased use of the Hormuz route has helped offset disruptions affecting its Red Sea export infrastructure. The shift has also coincided with a broader increase in ship-to-ship transfers near Oman, allowing regional producers to continue moving crude despite severe restrictions on conventional shipping through Hormuz. Reuters reported that such transfers are expected to reach about 2.5 million barrels per day in September, compared with 1.4 million barrels per day in August.
At the same time, geopolitical risks remain elevated. Yemen’s Houthi group has continued attacks on Saudi targets, including Riyadh and facilities around Yanbu, maintaining pressure on the kingdom’s oil infrastructure and alternative export routes.
The market is therefore balancing two opposing developments: expectations that diplomacy could reduce the supply-risk premium attached to the Iran conflict and continuing disruptions to oil infrastructure and shipping routes across the Middle East.
For Nigerian petroleum buyers, Monday’s depot prices indicate that the steep fall in international crude has not yet resulted in a corresponding broad-based reduction in wholesale petroleum prices, with PMS and AGO prices across major trading hubs remaining largely within existing ranges.