By Ayomide Otitoju
Nigerian crude prices climbed on Monday, with Bonny Light settling near $70 per barrel after touching record highs earlier this month. The gain comes as Nigeria continues to exceed its production quota under the Organization of Petroleum Exporting Countries and its allies (OPEC+).
Global benchmarks also recovered after weeks of selling pressure. Brent futures rose to $68 per barrel, while West Texas Intermediate (WTI) advanced 15 cents, or 0.24 percent, to $63.81. The rebound was fueled by heightened concerns over supply disruptions after Ukraine intensified attacks on Russia, as well as optimism that a potential U.S. interest rate cut could bolster global growth and fuel demand.
Bonny Light, which sold for $71 per barrel in July, spiked to nearly $75 in early August before retreating. Analysts attribute the latest uptick to improved security in the Niger Delta and renewed upstream activity, supported by the transfer of oil assets from international majors to domestic operators.
Nigeria’s crude output averaged 1.5 million barrels per day in July, exceeding its OPEC+ quota for the second consecutive month, according to OPEC’s August Monthly Oil Market Report.
India has emerged as a key buyer of Nigerian grades, securing two million barrels for September and October delivery. Although India currently sources 40 percent of its crude from discounted Russian supplies—the highest level in 2024—the low sulfur content of Nigerian crude makes it well-suited for Indian refineries. Industry observers suggest this could mark the beginning of a deeper energy partnership between both countries.
Domestically, the Dangote Refinery is also reshaping Nigeria’s crude demand landscape. The $20 billion, 650,000-barrel-per-day facility, which came onstream in 2024 after several delays, now plans to source all its crude feedstock locally. According to Devakumar Edwin, vice president of Dangote Industries, the refinery will shift away from previous reliance on supplies from the United States, Brazil, Equatorial Guinea, Angola, and Ghana.
With a capacity larger than Europe’s biggest refineries, the Dangote complex is producing naphtha, diesel, gasoline, and aviation fuel, positioning Nigeria as a growing force in global refining markets.
