Nigerian crude oil is under renewed pressure as global prices tumble, triggered by signs of a potential nuclear agreement between the United States and Iran—one of the world’s top oil producers.
On Tuesday, Nigerian crude settled at $68.34 per barrel, well below the Federal Government’s 2025 budget benchmark. With market sentiment turning bearish, analysts warn that prices may slide even lower in the coming days.
Brent futures for June delivery dropped to $65 per barrel in Thursday’s Asian trading, while West Texas Intermediate (WTI) slid 1.7% to $61.62.
This followed two major developments: fresh optimism around U.S.-Iran nuclear talks and an unexpected surge in U.S. crude inventories.
Ali Shamkhani, senior adviser to Iran’s Supreme Leader, confirmed Tehran’s willingness to sign a deal—“provided that all economic sanctions are lifted.”
Though American officials noted progress in recent talks, skepticism lingers over President Trump’s ongoing “maximum pressure” strategy.
Adding to the market strain, the U.S. Energy Information Administration reported a surprise inventory buildup of 3.5 million barrels last week, raising total stockpiles to 441.8 million barrels.
The data blindsided traders who had anticipated a 2-million-barrel drop, intensifying fears of an oversupplied market.Despite these challenges, Nigeria recorded a key milestone with the first export shipment of its new Obodo crude blend.
“This new Obodo crude blend strengthens Nigeria’s export portfolio in line with the Commission’s strategic objectives of enhancing production output, maximizing hydrocarbon resources, and attracting investment through superior operations and innovation,” said Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The cargo, produced by Conoil Producing Limited under a production-sharing contract with the Nigerian National Petroleum Company Limited, marks a win for local content and innovation in Nigeria’s upstream sector.In a broader positive turn, Nigeria secured over $8 billion in Deepwater and gas investments within the past year.
Special Adviser to the President on Energy, Olu Verheijen, attributed the inflow to “strong presidential leadership, improved fiscal policies, streamlined contracting, and gas-to-power reforms.”
“We moved from gridlock to greenlight, and that’s how we attracted investors,” she stated.
Still, the current oil price slide poses a serious threat to Nigeria’s revenue outlook and currency stability, with market watchers keeping a close eye on upcoming OPEC+ moves and further U.S.-Iran developments.
