Global crude prices opened the week firmly on Monday, extending last week’s upward momentum as traders responded to a tighter supply outlook and renewed geopolitical strain affecting key oil shipping corridors.
As at the time of writing 7:30 a.m. (WAT), Brent crude rose 2.16 per cent to $107.60 per barrel, while US West Texas Intermediate gained 1.92 per cent to $96.21 per barrel. The move keeps both benchmarks on a bullish path after days of sustained volatility driven by supply-side concerns.
Market direction is being shaped largely by uncertainty around Middle East stability, particularly the Strait of Hormuz, through which a significant share of global crude exports is transported. Any prolonged disruption to flows from the route continues to act as a strong price driver, with traders increasingly factoring in risk premiums.
Sentiment was further reinforced after diplomatic efforts involving the United States and Iran suffered a setback, following President Donald Trump’s decision to cancel a planned Pakistan-based engagement aimed at reviving negotiations. The development has weakened expectations of an early de-escalation in tensions.
In trading circles, the breakdown in talks is being read as a signal that geopolitical risks may persist longer than previously anticipated, keeping supply chains exposed to intermittent shocks.
For oil importers and refiners, the current price direction signals a tougher procurement environment. Higher Brent and WTI benchmarks typically feed into elevated landed costs, especially for countries reliant on imports to meet domestic fuel demand.
In Nigeria, sustained trading above the $100 mark for Brent is closely watched by downstream operators, as it can influence pricing decisions across petrol, diesel, and aviation fuel markets, particularly when combined with exchange rate pressures and freight costs.
Analysts say the market is now firmly risk-driven rather than demand-led, with short-term price movements likely to remain sensitive to political developments as well as any further disruption to shipping routes in the Gulf region.