Nigerian Bonny Light crude defies global pressure, trading marginally higher than Brent, even as volatile markets and shifting geopolitical dynamics threaten to undercut oil revenues for Africa’s largest economy.
Bonny Light, Qua Iboe, and Brass River closed at $67.30 per barrel on Friday, slightly above Brent crude, which slid to $66.04 amid U.S.-China trade talks in London. The development comes as Nigeria debuts a new crude blend from its first private onshore export terminal in over half a century, signalling a new era in Indigenous energy exports.
Green Energy International Limited (GEIL) confirmed its maiden crude export from the newly built Otakikpo terminal in Rivers State, marking a historic step in Nigeria’s energy independence. “This is a testament to perseverance, divine favour, and the capabilities of our local talent,” said Prof. Anthony Adegbulugbe, GEIL’s Chairman. A Shell-chartered vessel lifted the terminal’s first shipment at 2:00 PM on June 8.
While oil prices dropped slightly on Monday, they have largely held last week’s gains, with Brent climbing 4% over the week on renewed optimism about trade negotiations between Washington and Beijing. U.S. West Texas Intermediate (WTI) crude edged down 4 cents to $64.05 but posted its first weekly gain in three weeks, reflecting investor confidence that a trade deal may stabilise demand.
Amid OPEC+ production adjustments and global inventory buildup, prices have managed to stay above $60. Eight OPEC+ countries are boosting output by 410,000 barrels per month until July, a move seen as strategic posturing against U.S. shale producers. Nonetheless, concerns about an oversupply persist, with crude oil still down over 10% year-to-date.
As summer travel kicks off, demand for gasoline and distillates is rising, helping to support prices. Yet Nigeria faces its own paradox, while local crude gains value, the nation’s largest refinery, Dangote, is increasingly relying on American oil. Over 14 million barrels of WTI Midland are expected to arrive by July, with U.S. barrels now accounting for one-third of the refinery’s imports due to better refining outputs.
“This is about refining efficiency and quality,” said a Dangote spokesperson. “WTI gives us better reformates for petrol blending, and Nigerian supply has tightened.” Global traders like Vitol are leading the charge in supplying the U.S. barrels to the $19 billion facility, underlining Nigeria’s growing integration with international oil flows even as it struggles to optimise local supply chains.
Read more on Nigeria’s NNPC aims for 1.9m barrels daily by year-end, targets $60bn oil investment
