The latest disagreement between President Donald Trump and Iran over the reopening of the Strait of Hormuz has pushed up oil prices by 5 per cent to $87 per barrel from $83 per barrel in the global market.
This was even as Bank of America (BofA) warned that oil prices could continue to rise as the world heads into winter if the two parties fail to reach an agreement on reopening the Strait of Hormuz.
Francisco Blanch, Bank of America’s head of commodities and derivatives research, told CNBC on Monday: “But if we don’t, we’re going to keep creeping higher into the winter.”
According to him, only a few ships can pass through the Strait of Hormuz, unlike in the past when about 140 ships used to pass through it.
The price of Brent crude, which benchmarks other crudes, including Nigeria’s Bonny Light and the OPEC Basket, increased to $87 per barrel from $83 per barrel yesterday.
At the current price, Nigeria recorded an excess revenue of $22.15 per barrel, as the N68.32 trillion 2026 budget was based on an oil price of $64.85 per barrel, production of 1.84 million barrels per day and an exchange rate of N1,400/$.
However, checks by Energy Vanguard showed that the domestic market has not yet responded to developments in the global market.
The prices of Premium Motor Spirit (PMS), also known as petrol, and AutomotiAve Gas Oil (AGO), or diesel, recorded mixed movements across major Nigerian petroleum markets on Monday.
The latest mid-day price report showed that petrol prices in Lagos remained relatively stable, with some depots recording marginal declines.
At African Terminal, petrol price dropped by N4 per litre to N1,165 from N1,169. Aiteo reduced its depot price to N1,165 from N1,168, while NIPCO cut its price by N2 to N1,166.
Dangote and Pinnacle maintained their petrol prices at N1,166 per litre.
The Lagos market also recorded higher prices, with GulfTreasure, Duport and others selling petrol at N1,550 per litre, while Rain Oil was listed at N1,580.
The mixed movements indicate continuing volatility in Nigeria’s downstream petroleum market, with depot prices varying according to location, supply conditions and individual depot pricing.
For motorists and other petroleum consumers, the developments suggest that pump prices could remain under pressure in areas where depot prices are rising, particularly if the increases persist.
