CRUDE oil markets rallied sharply on Friday, placing prices on course for one of their strongest weekly advances in several years as rising tensions in the Middle East threaten supply flows and tanker movements through the Strait of Hormuz.
Brent crude climbed to $92.69 per barrel late Friday, gaining more than 4 percent on the day. U.S. benchmark West Texas Intermediate also moved higher, reaching around $90.90 per barrel after adding roughly $9.80. Murban crude, a key benchmark for Middle Eastern exports, was trading at $103.2 mark per barrel.
The rising global oil prices have forced up the price of petrol in Nigeria, which now sells at N1,035 to N1,080 per litre at various filling stations in Lagos and Abuja.
At Ejigbo, Cele, Ikotun and Airport Road in Lagos, a litre of petrol sells between N1,035 and N1,050 per litre. At the Federal Capital Territory, a litre of fuel sells between N1,050 and N1,080 in various parts of the city and semi-urban centres. The situation has forced petrol racketeers in Abuja to sell fuel they had stored at warehouses at rates cheaper than petrol stations.
Dangote raises petrol price
The Dangote Petroleum Refinery raised its Premium Motor Spirit (PMS) or petrol gantry price to N995 per litre on Friday, representing a sharp N221 jump in just four days. The surge came amid volatility in global crude oil prices, shipping costs, and ongoing geopolitical tensions, Economy Post earlier reported.
READ ALSO: Dangote Refinery increases petrol price to N995 as Middle East crisis inflicts hardship
This raises inflationary prospects and inflicts hardship on Nigerians who are reeling from years of enduring cost-of-living crisis.
A senior refinery official confirmed the adjustment, noting that the review reflected shifts in international oil market fundamentals. ‘Yes, the price has been reviewed. The new gantry price is now N995 per litre,” the official said.
This latest revision follows a series of rapid increases: petrol moved from N774 to N874 per litre earlier this week before climbing again to the current N995. In total, the cost of a litre of petrol has surged by about 29 percent in less than a week, a development that threatens to exacerbate financial pressures for ordinary Nigerians.
Checks on petroleumprice.ng show the new gantry price has been updated, signaling a likely ripple effect on retail pump prices across the country, with petrol expected to sell above N1,050 per litre in some locations once transportation and marketers’ margins are factored in.
Petrol gains
The surge concludes a week of steady gains across the oil market, fueled by growing geopolitical risks tied to the standoff involving Iran and the United States, along with heightened concerns over the safety of shipping routes in the Gulf.
The Strait of Hormuz remains one of the most strategically important energy corridors globally, with nearly one-fifth of the world’s traded crude passing through the narrow channel. Any perceived threat to vessel traffic in the area tends to trigger sharp price reactions as traders quickly adjust for potential supply disruptions, Oilprice.com reports.
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With the latest rally, crude prices are now heading toward their biggest weekly increase in roughly four years.
Investors are increasingly pricing in the risk that crude exports from the Persian Gulf may face additional logistical hurdles if the conflict intensifies.
Market dynamics are also shifting between the two main global benchmarks. Brent and WTI have both surged over the past week as seaborne crude shipments face disruptions and oil production in Iraq experiences real outages.
A week ago, Brent traded about $8–$9 per barrel higher than WTI. That premium has now narrowed to around $2-$3. Under normal circumstances, geopolitical shocks in the Gulf tend to widen the Brent premium because Brent reflects globally traded seaborne crude, whereas WTI is more closely linked to inland U.S. supply.
The narrowing spread suggests traders are increasingly turning to U.S. crude, anticipating that global buyers may rely more heavily on American exports if Middle Eastern supplies tighten. This expectation is helping lift WTI prices relative to Brent.
Another benchmark reinforcing this trend is Murban crude, the Abu Dhabi grade widely used as a pricing reference for Asian refiners. With Murban approaching $103.2 per barrel, refiners across Asia are facing sharply higher feedstock costs.
The strong rise in Murban prices indicates that Asia, the region most dependent on Persian Gulf crude exports, is already feeling the pressure from tightening supply conditions.
Meanwhile, the White House has said it is reviewing possible policy options to cushion the economic impact of higher oil prices. Officials are considering measures that could help limit the burden on consumers if crude prices continue climbing.
As long as uncertainty surrounding the Strait of Hormuz persists, analysts expect oil markets to remain highly volatile. Brent is now $92/69 level, while triple-digit crude prices are already appearing in parts of the global benchmark system.
