Petrol Price May Rise Further as Crude Hits $107
The latest rally has increased pressure on domestic petrol prices, which have already risen from about N830 per litre before the Middle East crisis to N1,310 or more in some locations.
Before the crisis began on February 28, Brent crude was trading below $69 per barrel. However, disruptions to global oil supplies have since pushed international crude prices sharply higher, prompting the Dangote Petroleum Refinery and fuel importers to review their pricing.
With Brent crude now above $107 per barrel and the ongoing US-Iran conflict disrupting tanker movements through the Strait of Hormuz, marketers and analysts have warned that another increase in petrol prices could be imminent.
According to Oilprice.com, Brent crude rose to $107 per barrel on Thursday as the prolonged military confrontation between the United States and Iran continued to disrupt oil supplies through the Strait of Hormuz, fuelling concerns about a sustained reduction in global crude availability.
The international benchmark gained more than five per cent in early trading, extending a rally that pushed it above the $100 mark earlier in the week.
West Texas Intermediate crude also climbed above $100 per barrel, reflecting growing concerns that the conflict could continue to constrain global oil supplies.
The latest surge was largely driven by a sharp decline in crude flows through the Strait of Hormuz.
Oilprice.com reported that oil volumes through the waterway, which had recovered to between six million and nine million barrels per day in previous weeks, had fallen sharply, with recent estimates putting daily outflows below two million barrels.
Shipping trackers also reported that no very large crude carriers had exited the strait since early September, representing a significant decline from the higher tanker traffic recorded during a brief period of relative calm.
The escalation of attacks on tankers and commercial vessels in the Persian Gulf and surrounding waters has further heightened uncertainty in the global oil market.
Iran has claimed to have struck several ships, while the United States confirmed the destruction of some Iranian oil tankers.
Officials from both sides have given no indication of an imminent ceasefire, with their statements suggesting that the confrontation could continue for weeks or longer.
Analysts said the absence of a clear path towards de-escalation had forced traders to reassess global crude supply risks.
Physical crude benchmarks had already moved above $100 in recent sessions, while futures prices followed as inventories tightened and alternative export routes faced increased exposure to attacks.
For months, reports of recovering tanker traffic through the Strait of Hormuz had helped to limit upward pressure on crude prices. That outlook has now changed.
With oil flows sharply reduced and no clear diplomatic resolution in sight, global markets are increasingly pricing in the possibility of prolonged disruption to one of the world’s most important energy transit routes.
