The price of Nigerian crude oil climbed above $70 per barrel on Tuesday, buoyed by rising geopolitical tensions in the Middle East following renewed Houthi attacks on vessels in the Red Sea.

 

Flagship Nigerian crude blends, Bonny Light, Brass River, and Qua Iboe, were sold at $72.30 per barrel, edging closer to the Federal Government’s 2025 crude oil benchmark of $75 per barrel and slightly outperforming global oil contracts.

 

Brent futures for September delivery closed at $69.91 per barrel, while West Texas Intermediate (WTI) slipped 0.4% to settle at $68 per barrel.

 

The market rally was triggered by reports of a deadly assault on the Liberian-flagged, Greek-operated bulk carrier Eternity C, in which four crew members were killed off the coast of Yemen. The drone and speedboat attack, attributed to Houthi rebels, has raised fresh concerns over energy security and supply chain stability along the critical Red Sea shipping corridor.

 

However, gains were tempered on Wednesday after the American Petroleum Institute (API) reported a surprise build in U.S. crude inventories. Crude stockpiles rose by 7.1 million barrels for the week ending July 4, defying market expectations of a 2.8 million barrel draw. Meanwhile, gasoline reserves declined by 2.2 million barrels, and distillate inventories dropped by 800,000 barrels, highlighting mixed demand signals from the U.S. fuel market.

 

Investor sentiment also remained cautious amid looming trade policy announcements, as markets await potential new tariffs from U.S. President Donald Trump.

 

In a related development, Dangote Refinery announced a reduction in its depot petrol price from ₦840 to ₦820 per litre. The company stated that the new price takes immediate effect and aligns with its ongoing expansion of nationwide distribution to licensed marketers.